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

T.C.A.No.311 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 11.08.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN and THE HONOURABLE MR. JUSTICE J.SATHYA NARAYANA PRASAD T.C.A.No.311 of 2019 Commissioner of Income Tax, Non Corporate Circle 20 (1), Chennai 600 034. ... Appellant

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

Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order dated 28.02.2007 passed by the Income Tax Appellate Tribunal, “B” Bench, Chennai, in I.T.A.No.994/Chny/2018. For Appellant : Mr.M.Swaminathan Senior Standing Counsel M/s.V.Pushpa, Standing Counsel Page 1/6 https://www.mhc.tn.gov.in/judis T.C.A.No.311 of 2019 For Respondent : No appearance JUDGMENT (Judgment of the Court was delivered by R.MAHADEVAN, J.) This tax case appeal has been filed by the appellant / Revenue, challenging the common order dated 12.11.2018 passed by the Income Tax Appellate Tribunal, “B” Bench, Chennai, I.T.A.No.994/Chny/2018, relating to the assessment year 2009-10. 2.By order dated 11.06.2019, this court admitted the aforesaid tax case appeal on the following substantial questions of law: “(i) Whether on the facts and circumstances of the case, the Income tax Appellate Tribunal was right in holding that the right 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, the Income Tax Appellate Tribunal was right in law in reversing the capitalization of the expenses by the Assessing Page 2/6 https://www.mhc.tn.gov.in/judis T.C.A.No.311 of 2019 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 accounts standards nor income tax law?" 3. When the matter was taken up for consideration, the learned counsel appearing for the appellant / Revenue submitted that during the pendency of this tax case appeal, the assessee has filed the requisite Forms 1 and 2 under Section 4 of the Direct Tax Vivad Se Vishwas Act, 2020, which were accepted and Form 3 was issued to the assessee on 21.04.2021 by the Income Tax Department. The learned counsel has also filed Form 3 dated 21.04.2021 to that effect. 4. Despite the service of notice and the name of the respondent having been printed in the cause list, there is no representation on behalf of them. 5.This court heard the submissions made by the learned counsel appearing for the appellant, as per which, the assessee has already availed the Page 3/6 https://www.mhc.tn.gov.in/judis T.C.A.No.311 of 2019 benefit conferred under the beneficial legislation viz., the Direct Tax Vivad Se Vishwas Act, 2020, enacted for resolution of disputed tax and for matters connected therewith or incidental thereto, which came into force with effect from 17.03.2020; and the declarations submitted by the assessee were also accepted and Form 3 was also issued to them by the Income Tax Department. In view of such development, it is unnecessary for this court to decide the substantial questions of law arisen in this tax case appeal. 6.Therefore, recording the submissions so made by the learned counsel appearing for the appellant, this appeal stands disposed of, directing the department to process the application in accordance with the Act and communicate the decision to the assessee at the earliest. No costs. [R.M.D., J.] [J.S.N.P., J.] 11.08.2022

Internet : Yes

Index : Yes / No av To 1. The Income Tax Appellate Tribunal, “B” Bench, Chennai. Page 4/6 https://www.mhc.tn.gov.in/judis T.C.A.No.311 of 2019 2. The Commissioner of Income Tax, Non Corporate Circle 20 (1), Chennai 600 034. 3. The Assistant Commissioner of Income Tax, Non-Corporate Circle 20 (1), Chennai - 34. 4. The Commissioner of Income Tax (Appeals) - 14, Chennai. Page 5/6 https://www.mhc.tn.gov.in/judis T.C.A.No.311 of 2019 R. MAHADEVAN,

and J.SATHYA NARAYANA PRASAD

, J.

av T.C.A.No.311 of 2019 11.08.2022 Page 6/6 https://www.mhc.tn.gov.in/judis