Mumbai ITAT allows
deduction u/s. 37 to Zee Entertainment (‘assessee’) with respect
to write off of advance given to BCCI, rejects Revenue's stand that it
represents a capital loss as it is in relation to acquisition of media
rights (which is a capital asset); Assessee acquired media rights from
BCCI on payment of US $ 17.5 million, out of which US$ 10 million was adjusted
against two matches played and the balance was kept as deposit (to be adjusted
against last series), however, owing to dispute, the contract was terminated
and the deposit was forfeited by BCCI during relevant AY 2008-09; ITAT holds
that the agreement with BCCI for acquiring the media rights was pursuant to
assessee’s normal business activity (of broadcasting and distribution of
TV programmes) and US$ 10 million which was adjusted in earlier year was
offered to tax by assessee; Further rejects Revenue’s stand that since the
assessee filed a legal case for recovery and also initiated arbitration
proceedings, it could not be said that the loss had actually crystallized
during relevant AY, similarly, rejects Revenue’s submission that write-off was
premature as assessee did not fully explore the possibility of its recovery;
ITAT remarks that “it is the judgement of the assessee as a businessman.”,
notes that despite arbitration proceedings, as assessee did not visualize any
sign of recovery, it wrote-off the forfeited amount and claimed deduction:ITAT
Subscribe to:
Post Comments (Atom)
Taxation of Intangible assets acquired through business restructuring.
1. Background 1.1 When a company aims to acquire another company's business through amalgamation or demerger, assets or ...
-
A new website launched for TDS related matters www.tdscpc.gov.in TRACES – T DS R econciliation A nalysis and C orrection E nabling S yste...
-
LEASE-DEED (A brief Introduction) Lease defined. A lease of immovable property is a transfer of a right to enjoy such property, mad...
-
Particulars in Part 1 and Part 2 of Step-2 of registration form are required to be exactly the same as reported in the TDS statement. Plea...
-
Introduction It's important for taxpayers to have a clear understanding of the available allowances and deductions, as they can grea...
-
· Mumbai ITAT in the case of Mukesh Harilal Mehta held that Exemption U/S 54 cannot be denied merely due to mistake by the developer.
-
Earlier this year, the Mauritius Government approved the amendment to the India – Mauritius tax treaty, aligning it with the proposal of th...
-
Slump sale is transfer of one or more business undertakings for a lump sum consideration, without assigning individual values to the each...
-
An eminent concern within the GST framework pertains to the entitlement of Input Tax Credit (ITC) concerning expenditures associated with In...
-
Introduction The law relating to companies is laid down in Companies Act, 2013 and the rules made thereunder and t...
-
This Tax Alert summarizes a recent judgement of the Delhi High Court (HC) [1] dealing with the issue of denial of input tax credit (ITC) ...
No comments:
Post a Comment