https://www.taxtmi.com/caselaws?id=766150 The ITAT Delhi ruled on royalty expenses claimed by an assessee company that acquired audio-visual rights for regional music content. The tribunal found that payments made under a license agreement were minimum guarantee fees rather than royalty payments, as property rights remained with the licensor. The assessee had guaranteed revenue for six years without transferring property rights. The tribunal directed the AO to redo the assessment, treating the license fees as deferred revenue expenditure spread over the six-year license period rather than allowing immediate deduction or treating them as prior period expenses. en-us Fri, 10 Jan 2025 00:00:00 +0530 Tue, 18 Feb 2025 13:12:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=766150 The ITAT Delhi ruled on royalty expenses claimed by an assessee company that acquired audio-visual rights for regional music content. The tribunal found that payments made under a license agreement were minimum guarantee fees rather than royalty payments, as property rights remained with the licensor. The assessee had guaranteed revenue for six years without transferring property rights. The tribunal directed the AO to redo the assessment, treating the license fees as deferred revenue expenditure spread over the six-year license period rather than allowing immediate deduction or treating them as prior period expenses. Case-Laws Income Tax Fri, 10 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=766150