TaxTMI 
TaxTMI 
2016 (2) TMI 928
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....010-11 and 2011-12. The Revenue has also filed appeal for the assessment year 2005-06. Since common issue arises for consideration in these appeals, we heard all these appeals together and disposing of the same by this common order. 2. First, Let's take Revenue's appeals. The only issue arises for consideration is with regard to treatment of expenditure on the cost of television serial rights and feature film rights. The assessee claimed the expenditure on television serial rights and feature film rights as revenue expenditure. However, the Assessing Officer treated the same as intangible asset and allowed depreciation at the rate of 25%. However, on appeal by the assessee, the CIT(Appeals), by following the order of this Tribunal in the....
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....for the purpose of business or profession. According to the Ld. D.R., the rights acquired by the assessee in the films/serials have the enduring benefit, which do not expire on the date of telecast. Referring to the contention of the assessee before the Assessing Officer that the expenditure has to be amortized in toto, the Ld. D.R. submitted that the claim of the assessee to amortise the expenditure cannot be allowed since the right in films/serials is enduring benefit. According to the Ld. D.R., even after telecasting films/serials acquired by the assessee, the rights of the assessee over such films/serials continue. The assessee itself treats the rights in the films/serials as intangible rights in the books of account for the purpose of ....
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....e capitalized and the assessee at the best can claim only depreciation. 6. On the contrary, Sh. N. Devanathan, the Ld.counsel for the assessee, submitted that the only issue arises for consideration is with regard to classification of expenditure incurred by the assessee for acquiring right on the films/serials. No doubt, the Assessing Officer found that the expenditure is in the capital field, as intangible asset and allowed depreciation at the rate of 25%. However, the CIT(Appeals), after referring to the decision of this Bench of the Tribunal in the assessee's own case in I.T.A. Nos.1515 to 1520/Mds/2013 dated 31.10.2013, found that the treatment of the expenditure by the Assessing Officer is not correct. The CIT(Appeals) by follo....
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....ention of the Ld. D.R. is that an appeal was already filed before High Court against the order of this Tribunal and the matter is pending adjudication before the higher forum. It is not the case of the Revenue that the High Court stayed the operation of the order of this Tribunal. Merely because an appeal is said to be pending before the High Court, this Tribunal is of the considered opinion that this Tribunal cannot take a different view. When the CIT(Appeals) followed the order of this Tribunal, we do not have any reason to interfere with the orders of the lower authority. Merely because an appeal is said to be pending before the High Court, in the absence of any change of material facts during the years under consideration, this Tribunal....
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...., 1962, the Ld.counsel submitted that unless and until the Assessing Officer satisfies himself that the assessee incurred the expenditure for earning income which does not form part of total income, there cannot be any disallowance under Section 14A of the Act. 10. On the contrary, Ms. Jayanthi Krishnan, the Ld. Departmental Representative, submitted that for making investment, the assessee has to necessarily incur expenditure on overheads. The assessee has to incur substantial expenditure for taking a managerial decision for making investments in mutual funds and the shares of the subsidiary companies. Therefore, the CIT(Appeals) found that Section 14A read with Rule 8D is mandatory. The assessee has generated income by making various i....
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....vailable on record. The main contention of the assessee is that the available share capital including reserves and surplus was Rs. 2385.7 Crores as on 31.03.2010. The available share capital is Rs. 1970.4 Crores and Reserves and surplus is Rs. 21,886.7 Crores. The investments made in mutual funds including subsidiary companies are only Rs. 541.11 Crores. Therefore, it cannot be said that the assessee has diverted the borrowed funds for making any investment either in the sister concerns or in the mutual funds. When the assessee has sufficient share capital, reserves and surplus, this Tribunal is of the considered opinion that there cannot be any disallowance towards the interest paid on the borrowed funds under Section 14A of the Act. For t....