M/S.COMMISSIONER OF INCOME T vs. M/S.SUN TV NETWORK LIMITED

Tax Case Appeal No.821 of 2017 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 18.08.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN and THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ Tax Case Appeal No.821 of 2017 Commissioner of Income Tax, Non Corporate Circle 20 (1), Chennai 600 034. ... Appellant Versus M/s. Sun TV Network Limited, Murasoli Maran Towers, 73, MRC Nagar Main Road, MRC Nagar, Chennai 600 028. PAN: AADCS 4885 K ... Respondent Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order dated 14.08.2017 passed by the Income Tax Appellate Tribunal, “C” Bench, Chennai, in I.T.A.No.1309/Mds/2017. For Appellant : Mr.Swaminathan Senior Standing Counsel M/s.V.Pushpa, Standing Counsel For Respondent : Mr.Rahul Balaji for M/s. M.Sneha Page 1/6 https://www.mhc.tn.gov.in/judis Tax Case Appeal No.821 of 2017 JUDGMENT (Judgment of this Court was delivered by R.MAHADEVAN, J.) This tax case appeal has been filed by the appellant / Revenue, challenging the order dated 14.08.2017 passed by the Income Tax Appellate Tribunal, Chennai 'C' Bench, in I.T.A.No.1309/Mds/2017, relating to the assessment year 2012-2013. 2.By order dated 06.02.2018, this court admitted the aforesaid tax case appeal on the following substantial questions of law: "(i) Whether 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 the Income Tax Appellate was right in law in reversing the capitalization of the expenses when accounting standards issued by the Institute of Chartered Accountants of India, copy rights in films/serials are Page 2/6 https://www.mhc.tn.gov.in/judis Tax Case Appeal No.821 of 2017 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 ascertainable with reasonable accuracy, cannot be accepted as it neither adheres to the principles of accounting standards nor Income Tax law? (iii) Whether 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 are offered as income in the year when programme is aired when the fact remains that the assessee is following Mercantile System of accounting and the impugned revenue has to be offered only in the current year? (iv) Whether the Income Tax Appellate Tribunal was right in confirming the order of the Commissioner of Income Tax (Appeals) directing the Assessing Officer to allow the expenditure as deduction in the year in which such tax is deducted and remitted?" 3.When the 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 Page 3/6 https://www.mhc.tn.gov.in/judis Tax Case Appeal No.821 of 2017 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 18.08.2021. 4.The aforesaid submission made by the learned counsel for the respondent/assessee has also been fairly conceded by the learned standing counsel appearing for the appellant/ Revenue. 5.In view of the subsequent development, this court is of the opinion that nothing survives for adjudication in this appeal. Recording the submission so made by the learned counsel on either side, the Tax Case Appeal stands disposed of. No costs. [R.M.D,J.] [M.S.Q, J.] 18.08.2022 Internet : Yes

Index : Yes / No av Page 4/6 https://www.mhc.tn.gov.in/judis Tax Case Appeal No.821 of 2017 To 1. The Income Tax Appellate Tribunal, Chennai 'C' Bench, 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 - 600 034. 4. The Commissioner of Income Tax (Appeals)-14, Chennai. Page 5/6 https://www.mhc.tn.gov.in/judis Tax Case Appeal No.821 of 2017 R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. av Tax Case Appeal No.821 of 2017 18.08.2022 Page 6/6 https://www.mhc.tn.gov.in/judis