2012 (7) TMI 967

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.... ORDER PER RAJPAL YADAV, JM The revenue is in appeal before us against the order of Ld. CIT(A) dated 06- 02-2012 passed for AY 2007-08. The revenue has taken three grounds of appeal, but its grievance revolves around a single issue, whereby it has challenged deletion of ₹ 10,80,000/- from the value of total Fringe Benefits. 2. The brief facts of the case are that assessee has filed its ....

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....ness of sub-licensing and letting out the products of Time Warner and Turner Group of Companies. 4. In the accounting period, relating to AY 2007-08, it was engaged in the distribution of various products, namely television channels and television programmes of Time Warner Group Companies. It entered into a distribution agreement, wherein, TBSAP licensed for a fee, sub-distribution rights of TV ....

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....sode having duration of 30 minutes. The payments have been defined in the agreement. The assessee had incurred Carriage Fee expenses amounting to ₹ 54,00,000/-. Ld. Assessing Officer has observed that the expenses incurred by the assessee were for the advertisements and therefore, they are in the nature of sales promotions, involving Fringe Benefits in them. He estimated the Fringe Benefits ....

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....mpanies. Hence Ld. Assessing Officer has rightly treated the expenses incurred by the assessee in the nature of 'sales promotion'. ON the other hand, Ld. Counsel for the assessee submitted that assessee has earned advertisement revenue of ₹ 19,94,277/- on the telecast of these programmes. It was a business expenditure for availing a space from the Prasar Bharti for telecasting its programme.....