THE COMMISSIONER OF INCOME T vs. M/S.SUNTV NETWORK LTD

T.C.A.No.276 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED 10.08.2022 CORAM THE HON'BLE Mr. JUSTICE R. MAHADEVAN AND THE HON'BLE Mr. JUSTICE MOHAMMED SHAFFIQ T.C.A.No.276 of 2019 The Commissioner of Income Tax Non Corporate Circle 20(1) Chennai 600 034

.. Appellant Vs. M/s.Sun TV Network Limited 73, MRC Nagar Main Road MRC Nagar, Sindhur Towers Chennai 600 028 PAN : AADCS 4885 K

.. Respondent Tax Case Appeal filed under Section 260-A of the Income Tax Act, 1961, against the order dated 20.11.2018 passed by the Income Tax Appellate Tribunal 'A' Bench, Chennai, in I.T.A.No.1243/Chny/2018. For Appellant Mr.M.Swaminathan Mrs.V.Pushpa Standing Counsels For Respondent Mr.Rahul Balaji (undertook to file vakalat) 1/5 https://www.mhc.tn.gov.in/judis T.C.A.No.276 of 2019 J U D G M E N T (Judgment was delivered by R. MAHADEVAN, J.) This Tax Case Appeal arises from the order dated 20.11.2018 passed by the Income Tax Appellate Tribunal 'A' Bench, Chennai, in I.T.A.No. 1243/Chny/2018, relating to the assessment year 2013-14, raising the following substantial questions of law : “(i) Whether on the facts and circumstances of the case and in law, the Income Tax Appellate Tribunal was right in holding that the rights are found incapable of sustained exploitation after the first broadcast and hence considering the principles of consistency and nature of expenditure, the same has to be treated as revenue in nature, since the assessee does not derive enduring benefit, when films once broadcasted are not going out of shelf? (ii) Whether on the facts and circumstances of the case and in law, the Income Tax Appellate Tribunal was right in law in reversing the capitalization of the expenses by the Assessing Officer when the fact remains that as per accounting standards issued by the Institute of Chartered Accountants of India, copy rights in films/serials are intangible assets and writing off of entire cost of the acquiring such rights at the first broadcast itself on the ground that future revenues are not ascertainable with reasonable accuracy, cannot be accepted as it neither adheres to the principles of accounting standards nor income tax law? 2/5 https://www.mhc.tn.gov.in/judis T.C.A.No.276 of 2019 (iii) Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the monies received are shown as deferred revenue by the assessee in the year of receipt and or offered as income in the year when programme is aired when the fact remains that the assessee is following system of accounting and the impugned revenue as to be offered in the current year?" 2. When this matter was taken up for consideration, the learned counsel appearing for the respondent/assessee submitted that during the pendency of this tax case appeal, the assessee has availed the benefit conferred under the Direct Tax Vivad Se Vishwas Act, 2020, and filed necessary declarations, which were accepted and Form-5/order for full and final settlement of tax arrears, was also issued by the Income tax department, on 19.08.2021. The learned counsel has also filed Form-5 dated 19.08.2021 to that effect. 3. The aforesaid submission made by the learned counsel for the respondent/assessee has also been fairly conceded by the learned Standing Counsels appearing for the appellant/ Revenue. 4. In view of the subsequent development, this court is of the opinion that 3/5 https://www.mhc.tn.gov.in/judis T.C.A.No.276 of 2019 nothing survives for adjudication in this appeal. Recording the submission so made by the learned counsel on either side, this Tax Case Appeal stands disposed of. No costs. [R.M.D,J.] [M.S.Q, J.] gya 10.08.2022

To 1.The Commissioner of Income Tax Non Corporate Circle 20(1) Chennai 600 034 2.The Income Tax Appellate Tribunal 'A' Bench, Chennai 3.The Commissioner of Income Tax (Appeals) 14 Chennai R. MAHADEVAN, J. AND 4/5 https://www.mhc.tn.gov.in/judis T.C.A.No.276 of 2019 MOHAMMED SHAFFIQ, J. gya T.C.A.No.276 of 2019 10.08.2022 5/5 https://www.mhc.tn.gov.in/judis