2012 (9) TMI 556 - SCH - Income Tax

Transfer of leasing rights of Films - considered to be goods OR sale ? - Held that - As decided in CIT v. B. Suresh 2009 (3) TMI 4 - SUPREME COURT Profits are embedded in the income earned. Earning of income depends on sale of goods and services - the word sale would also include lease as indicated in Rule 9A(7) which states that for the purposes of Rule 9A, the sale of the rights of exhibition of feature films would include the lease of such rights. Similarly, under Rule 9B(6), it has been, inter alia, provided that sale of rights of exhibition of a feature film would include the lease of such rights - in favour of assessee.

Summary

The Supreme Court dismissed civil appeals by the Department concerning Assessment Year 1994-1995. The issue was whether leasing rights can be considered as 'goods' and if transferring such rights would constitute a 'sale'. The court ruled in favor of the assessee based on the case of CIT v. B. Suresh [2009] 313 ITR 149/178 Taxman 457 (SC). No costs were awarded.