MEDIA RESEARCH USERS COUNCIL,MUMBAI vs. ADIT (E) 1(1), MUMBAI

ITA 6459/MUM/2012Status: DisposedITAT Mumbai29 March 2022AY 2006-0736 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that advances paid to HRG for research assignments cannot be considered as loans to related parties for denying Section 11 benefits. However, the issue of mutuality and dealings with non-members was remitted back to the Assessing Officer for fresh assessment.

What were the facts?

The assessee, a company registered under Section 25 of the Companies Act, 1956, and claiming exemption under Section 11 of the Income-tax Act, 1961, entered into an agreement with Hansa Research Group Pvt. Ltd. (HRG) for conducting market surveys. The revenue sharing arrangement and advances paid to HRG were scrutinized by the Assessing Officer.

What were the issues?

Whether the assessee is eligible for exemption under Section 11 when it entered into agreements and shared revenues with a related entity, and whether the advances paid constitute loans to related parties.

Which sections of the Income-tax Act were involved?

Section 11,Section 13(1)(c),Section 13(2),Section 13(3)

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Cases cited in this judgment(7)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

IN THE INCOME TAX APPELLATE TRIBUNAL (VIRTUAL COURT) “B” BENCH, MUMBAI BEFORE SHRI S. RIFAUR RAHMAN, HON'BLE ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, HON'BLE JUDICIAL MEMBER AND Media Research Users Council v. Addl. DIT(E)– 1(1) 128, TV Industrial Estate Piramal Chambers, Lalbaug S.K. Ahire Marg, Worli Mumbai – 400 012 Mumbai – 400012 PAN: AAATM5433F (Appellant) (Respondent) Media Research Users Council v. Addl. DIT(E)– Range 1 128, TV Industrial Estate Piramal Chambers, Lalbaug S.K. Ahire Marg, Worli Mumbai – 400 012 Mumbai – 400012 PAN: AAATM5433F (Appellant) (Respondent) ITA.No. 6393/MUM/2011 (A.Y: 2008-09) Media Research Users Council v. Dy. DIT(E)– 1(1) 128, TV Industrial Estate Piramal Chambers, Lalbaug S.K. Ahire Marg, Worli Mumbai – 400 012 Mumbai – 400012 PAN: AAATM5433F (Appellant) (Respondent)

2 Media Research Users Council Addl. DIT (E)– 1(1) v. Media Research Users Council Room No. 504, 5th Floor 128, TV Industrial Estate Piramal Chambers, Lalbaug S.K. Ahire Marg, Worli Mumbai – 400 012 Mumbai – 400012 PAN: AAATM5433F (Appellant) (Respondent) Shri Percy Pardiwala & Assessee by : Shri Niraj Sheth Department by : Shri C.T. Mathews

Date of Hearing : 24.01.2022 Dat

The order continues below.

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