9911796707
TMI Blog2014 (1) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... do not call for separate adjudication. Grounds No.2(a) to 2(e) relate to the disallowance out of made under S.40a(ia) of the Act. 3. Facts of the case in brief in relation to this issue are that the Assessing Officer treated the assessee as defaulter under S.201(1) r.w.s. 194 C for nondeduction of TDS on cost of television programmes, paid by it to M/s. Usha Kiron Television, M/s. Usha Kiron Movies and other parties holding that the provisions of S.194C are attracted to such payments, finding no merit in the contention of the assessee that the payments in question did not represent the cost of the programmes, since programmes were not produced for the assessee, and the assessee merely telecast the programmes produced and owned by those pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erials, etc. In this connection, assessee further submitted that it had credited the gross revenue generated during the said programmes and debited he amount paid to the said parties to Profit & Loss Account under the head "Cost of TV programmes" for accounting purposes. In fact, it would have been enough if the assessee had credited its share of revenue to its Profit and Loss Account instead of passing entries as stated above. In this view of the mater, it was submitted that the provisions of S.194C are not attracted to the transactions between the assessee and M/s.Usha Kiron Television M/s. Usha kiron Movies and others for the reasons that these parties did not carry out any "work" for the assessee, within the meaning of S.194C of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Profit and Loss Account it was seen that in the ETV Telugu Division and ETV Other Channel Division, the assessee has made payments towards software expenses. These payments are further subdivided into 'revenue share'. Other programmes' and 'Direct purchases'. Expenses towards revenue shares are towards the agreed cost for production of TV serials/programmes. From the agreements with other parties, it can be concluded that the assessee is associating itself with the producers for getting the programmes telecasted on ETCV channel and thereby the assessee gets as source for generating advertisement revenue. Hence, the assessee is making payments to various agencies on revenue sharing basis from the income generated through advertisements by w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer, to reconsider the matter afresh in consonance with the view that the Hon'ble High Court may take on this issue. The Assessing Officer shall of course afford reasonable opportunity of hearing to the assessee, and thereafter pass appropriate order in accordance with law. 9. The next issue, which is involved in ground No.3 of the assessee is with regard to disallowance of prior period expenses of Rs.2,38,85,000. 10. Facts of the case in relation to this issue are that the Assessing Officer has added an amount of Rs.2,38,85,000 on the ground that the expenditure does not pertain to the year under appeal. On appeal before the CIT(A), assessee submitted that the said amount pertains to excess amounts billed to various parties in the earlie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to tax in the earlier years, and it is written off to Profit & Loss Account in the year under appeal as prior period adjustment, the same should be allowed as deduction as bad debt, since such amounts were considered as income in earlier years. 12. The learned Departmental Representative on the other hand, opposing the above contentions of the assessee on this issue, supported the order of the CIT(A). 13. We have considered the rival submissions and perused the orders of the lower authorities. Though in principle, we are agreement with the disallowance made by the Revenue authorities, we find merit in the alternative contention of the assessee. Inasmuch as if an amount of Rs.2,11,34,759 out of total amount of Rs.2,38,85,000 was already ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the still earlier decision of the Tribunal in assessee's own case for the assessment years 2004-05 to 2006-07, vide order dated 22.3.2012, referred to above. Copies of both the decisions of the Tribunal have been furnished before us. In the absence of any decision to the contrary brought to our notice by the Revenue, following the consistent view taken by the Tribunal in assessee's own cases for the earlier years noted above, we do not find any infirmity in the impugned order of the CIT(A). We accordingly uphold the order of the CIT(A) on this issue and reject the grounds of the Revenue on this issue. 18. The next issue involved, covered by grounds No.5 to 6, relates to rate of depreciation applicable to accessories of computer, which h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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