TaxTMI 
TaxTMI 
2018 (9) TMI 1631
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....nd in the circumstances of the case, the Tribunal was right in holding that the provisions of Section 41(1) cannot be invoked to assess the benefit derived by the assessee in the form of allotment of shares, which represents deduction allowed towards the cost of production of film software during the earlier years" 4. The assessee was a proprietrix of M/s.Radaan Television Studio and Production Unit, which was taken over by M/s.Radaan Pictures Private Limited for a consideration of Rs. 4,37,38,900/-. This consideration was settled by way of allotment of 4,37,389 shares of Rs. 10/- each. The assessee claimed that no capital gain arose on this transaction in view of the provisions of Section 47(xiv) of the Income Tax Act, 1961 (for brevity, ....
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....or deduction has been made, is in existence in that year or not. 8. The Assessing Officer further held that since production expenses in respect of teleserials and films were allowed to the assessee in the respective assessment years and when the same were credited by the assessee in the capital account and the assessee was allotted the shares in the company, the assessee would be deemed to have received the benefit in the form of shares in respect of software library. Accordingly, the entire amount of Rs. 4,37,20,000/- was held to be taxable and included in the assessee's income. Further, the Assessing Officer relied upon the decision of this Court in the case of K.G.Subramanyam Vs. CIT [reported in 195 ITR 199]. 9. The assessee pref....
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.... the transaction between two persons where an allowance of deduction has been made on account of loss, expenditure or trading liability and subsequently during any previous year, such person has obtained some benefit in respect of such trading liability by way of remission or cessation, etc. Thus, in the assessee's case, when the software library was capitalized, it cannot be said that any benefit or remission or cessation of liability occurred. 12. The reliance placed on the decision in the case of K.G. Subramanyam was rightly held to be not applicable to the facts of the case, as, in the said case, the State of Karnataka levied litre fee, which was challenged and later, this levy was held to be unconstitutional and the assessee got a....
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....um to the KJC as per the contract but the assessee never claimed deduction for payment of interest under Section 36(1)(iii) of the IT Act. In the case at hand, learned CIT (A) relied upon Section 41(1) of the IT Act and held that the respondent had received amortization benefit. Amortization is an accounting term that refers to the process of allocating the cost of an asset over a period of time, hence, it is nothing else than depreciation. Depreciation is a reduction in the value of an asset over time, in particular, to wear and tear. Therefore, the deduction claimed by the respondent in previous assessment years was due to the depreciation of the machine and not on the interest paid by it. 16. Moreover, the purchase effected from the Kais....