144 Taxman 728 (Mad) (iv) Tips Cassettes & Record Co. v. ACIT

48 ITD 145Income Tax Appellate Tribunal1994#10642 most cited

What is 144 Taxman 728 (Mad) (iv) Tips Cassettes & Record Co. v. ACIT authority for?

Expenditure incurred for acquiring the right to reproduce music cassettes or CDs, especially a minimum guaranteed royalty essential for production, is considered a capital asset. This distinguishes it from general royalties which are variable with sales and may be revenue in nature.

10

judgments rely on this decision, according to BharatTax’s citation analysis of 366,315 Indian tax judgments — from 2014 to 2020.

Also referred to as

Tips Cassettes & Record Co. v. ACIT · 48 ITD 145 · royalty · minimum guaranteed royalty · capital asset · revenue expenditure · music cassette production · agreement with parties · right to reproduce

Judgments citing 144 Taxman 728 (Mad) (iv) Tips Cassettes & Record Co. v. ACIT

DCIT, Cir-3(1), Kolkata vs. M/S Saregama India Ltd, Kolkata

ITA 473/KOL/2017[2006-07]Status: DisposedITAT Kolkata29 Jan 2020AY 2006-07

Bench: Shri S.S.Godara & Dr. A.L. Saini

…a particular film as per agreement with various parties, and therefore the benefit coming to the assessee out of investment/expenditure is a capital asset. b. The observation/decision of the Hon'ble ITAT in the assessee's case for the A.Y 1984-85 [reported in 48 ITD 145, 156, 157 (Cal)] is distinguished because in that case the issue considered was royalty as a whole but in the instant case, it is, with respect to minimum guaranteed royalty without which the assessee cannot proceed to produce music/cassettes/CD etc. and this right cannot be withdrawn. c. The general royalty is related to expenses made after the p…

DCIT, Cir-3(1), Kolkata vs. M/S Saregama India Ltd, Kolkata

ITA 472/KOL/2017[2005-06]Status: DisposedITAT Kolkata29 Jan 2020AY 2005-06

Bench: Shri S.S.Godara & Dr. A.L. Saini

…a particular film as per agreement with various parties, and therefore the benefit coming to the assessee out of investment/expenditure is a capital asset. b. The observation/decision of the Hon'ble ITAT in the assessee's case for the A.Y 1984-85 [reported in 48 ITD 145, 156, 157 (Cal)] is distinguished because in that case the issue considered was royalty as a whole but in the instant case, it is, with respect to minimum guaranteed royalty without which the assessee cannot proceed to produce music/cassettes/CD etc. and this right cannot be withdrawn. c. The general royalty is related to expenses made after the p…

DCIT, Cir-3(1), Kolkata vs. M/S Saregama India Ltd, Kolkata

ITA 471/KOL/2017[2004-05]Status: DisposedITAT Kolkata29 Jan 2020AY 2004-05

Bench: Shri S.S.Godara & Dr. A.L. Saini

…a particular film as per agreement with various parties, and therefore the benefit coming to the assessee out of investment/expenditure is a capital asset. b. The observation/decision of the Hon'ble ITAT in the assessee's case for the A.Y 1984-85 [reported in 48 ITD 145, 156, 157 (Cal)] is distinguished because in that case the issue considered was royalty as a whole but in the instant case, it is, with respect to minimum guaranteed royalty without which the assessee cannot proceed to produce music/cassettes/CD etc. and this right cannot be withdrawn. c. The general royalty is related to expenses made after the p…

DCIT, Cir-3(1), Kolkata vs. M/S Saregama India Ltd, Kolkata

ITA 470/KOL/2017[2003-04]Status: DisposedITAT Kolkata29 Jan 2020AY 2003-04

Bench: Shri S.S.Godara & Dr. A.L. Saini

…a particular film as per agreement with various parties, and therefore the benefit coming to the assessee out of investment/expenditure is a capital asset. b. The observation/decision of the Hon'ble ITAT in the assessee's case for the A.Y 1984-85 [reported in 48 ITD 145, 156, 157 (Cal)] is distinguished because in that case the issue considered was royalty as a whole but in the instant case, it is, with respect to minimum guaranteed royalty without which the assessee cannot proceed to produce music/cassettes/CD etc. and this right cannot be withdrawn. c. The general royalty is related to expenses made after the p…

M/S Saregama India Limited, Kolkata vs. DCIT, Cir.-3(1), Kolkata

ITA 312/KOL/2017[2010-11]Status: DisposedITAT Kolkata29 Jan 2020AY 2010-11

Bench: Shri S.S.Godara & Dr. A.L. Saini

…a particular film as per agreement with various parties, and therefore the benefit coming to the assessee out of investment/expenditure is a capital asset. b. The observation/decision of the Hon'ble ITAT in the assessee's case for the A.Y 1984-85 [reported in 48 ITD 145, 156, 157 (Cal)] is distinguished because in that case the issue considered was royalty as a whole but in the instant case, it is, with respect to minimum guaranteed royalty without which the assessee cannot proceed to produce music/cassettes/CD etc. and this right cannot be withdrawn. c. The general royalty is related to expenses made after the p…

M/S Saregama India Limited, Kolkata vs. DCIT, Cir.-3(1), Kolkata

ITA 310/KOL/2017[2004-05]Status: DisposedITAT Kolkata29 Jan 2020AY 2004-05

Bench: Shri S.S.Godara & Dr. A.L. Saini

…a particular film as per agreement with various parties, and therefore the benefit coming to the assessee out of investment/expenditure is a capital asset. b. The observation/decision of the Hon'ble ITAT in the assessee's case for the A.Y 1984-85 [reported in 48 ITD 145, 156, 157 (Cal)] is distinguished because in that case the issue considered was royalty as a whole but in the instant case, it is, with respect to minimum guaranteed royalty without which the assessee cannot proceed to produce music/cassettes/CD etc. and this right cannot be withdrawn. c. The general royalty is related to expenses made after the p…

M/S Saregama India Limited, Kolkata vs. DCIT, Cir.-3(1), Kolkata

ITA 309/KOL/2017[2003-04]Status: DisposedITAT Kolkata29 Jan 2020AY 2003-04

Bench: Shri S.S.Godara & Dr. A.L. Saini

…a particular film as per agreement with various parties, and therefore the benefit coming to the assessee out of investment/expenditure is a capital asset. b. The observation/decision of the Hon'ble ITAT in the assessee's case for the A.Y 1984-85 [reported in 48 ITD 145, 156, 157 (Cal)] is distinguished because in that case the issue considered was royalty as a whole but in the instant case, it is, with respect to minimum guaranteed royalty without which the assessee cannot proceed to produce music/cassettes/CD etc. and this right cannot be withdrawn. c. The general royalty is related to expenses made after the p…

DCIT, Bangalore vs. Sri. Ramprasad Padmanabhan, Bangalore

In the result, Revenue’s appeal for Assessment Year 2006-07 is dismissed

ITA 718/BANG/2014[2006-07]Status: DisposedITAT Bangalore20 Feb 2015AY 2006-07

Bench: Shri Rajpal Yadav & Shri Jason P. Boaz

For Appellant: Dr. K. Shankar Prasad, JCIT (D.R)For Respondent: None

Section 143(3)Section 147Section 148

…various Tribunals squarely covered the issue in favour of the assessee in the case on hand :- i) Super Cassettes Industries P. Ltd. V CIT (1992) 41 ITD 530 (Del) ii) M. Subramanian V DCIT (1992) 42 ITD 676 (Mad) iii) Gramaphone Co. Of India Ltd. V DCIT (1994) 48 ITD 145 (Cal) iv) Tips Cassettes & Record Co. V ACIT (2002) 82 ITD 641 (Mum) v) ITO V Five Star Audio (ITA No.1921/Mds/2012). 5.2.4 From an appreciation the details on record, the orders of the authorities below and the judicial decisions cited and placed reliance on (supra), it is clear 7 that the assessee's is in the business of reproduction of audio so…

Commissioner of Income Tax vs. Shri Krishan Kumar

The appeals stand dismissed

ITA - 50 / 2000HC Delhi02 Dec 2014

…ennai-Trib.) (ii) Star Music Vs. DCIT [2013] 34 taxmann.com 235 (Chennai-Trib.) (iii) CIT Vs. Subramanian [2005] 144 Taxman 728 (Mad) (iv) Tips Cassettes & Record Co. Vs. ACIT [2002] 82 ITD 641 (ITAT Mum.) (v) Gramophone Co. of India Ltd. Vs. DCIT [1994] 48 ITD 145 (ITAT Cal.) (vi) CIT Vs. Modern Theatres Ltd. [1963] 50 ITR 548 (Mad.) (vii) Empire Jute Co. Ltd. Vs. CIT [1980] 124 ITR 1 (SC) (viii) Alembic Chemical Works Co. Ltd. Vs. CIT [1989] 177 ITR 377 (SC) (ix) Gotan Lime Syndicate Vs. CIT [1966] 59 ITR 718 (SC) 29. Having considered the submissions made by the learned counsel for the partie…

Commissioner of Income Tax vs. Shri Krishan Kumar

The appeals stand dismissed

ITA/50/2000HC Delhi02 Dec 2014

…ennai-Trib.) (ii) Star Music Vs. DCIT [2013] 34 taxmann.com 235 (Chennai-Trib.) (iii) CIT Vs. Subramanian [2005] 144 Taxman 728 (Mad) (iv) Tips Cassettes & Record Co. Vs. ACIT [2002] 82 ITD 641 (ITAT Mum.) (v) Gramophone Co. of India Ltd. Vs. DCIT [1994] 48 ITD 145 (ITAT Cal.) (vi) CIT Vs. Modern Theatres Ltd. [1963] 50 ITR 548 (Mad.) (vii) Empire Jute Co. Ltd. Vs. CIT [1980] 124 ITR 1 (SC) (viii) Alembic Chemical Works Co. Ltd. Vs. CIT [1989] 177 ITR 377 (SC) (ix) Gotan Lime Syndicate Vs. CIT [1966] 59 ITR 718 (SC) 29. Having considered the submissions made by the learned counsel for the partie…

144 Taxman 728 (Mad) (iv) Tips Cassettes & Record Co. v. ACIT (48 ITD 145) — Cited in 10 Judgments | BharatTax