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TMI Blog2014 (9) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... y, which are independent third parties and not closely related to the respondent assessee - These were also sales to other parties - There is no finding in the assessment order that the purchase and sale had not taken place and, therefore, Rule 9B(2)(a) relied upon by the assessee was not applicable - what was purchased and sold by the assessee were the ‘distribution rights’ - The right would include and consist of acquisition and transfer of rights to exhibit, broadcast and satellite rights - These rights are integral and form and represent rights of a film distributor - Even otherwise, if Rule 9B would not be applicable, purchase and sale of the film would result in a business transaction i.e. sale consideration received less purchase pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted the said contention by recording that the assessee had not fulfilled the necessary conditions of Rule 9B, which obviously had reference to the fact that the Assessing Officer observed that the assessee did not purchase cinematograph films for her own consumption but they were purchased for broadcasting/exhibition rights, satellite rights etc. As noticed below, this finding of the Assessing Officer for non-application of Rule 9B is wrong and erroneous. 2. The Commissioner of Income Tax (Appeals) accepted the assessee s plea, and after reference to the contention of the respondent assessee observed as under:- 4.1 The facts emanating from the order of the AO and the submissions of the assessee is that the assessee is in business of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no merit in the addition made by the AO and as such the addition made by the AO are without any justification and accordingly, the same are deleted. 3. The said finding has been affirmed by the Income Tax Appellate Tribunal by the impugned order dated 24.01.2014. 4. Before us, learned Sr. Standing Counsel has produced photocopies of order sheet, profit and loss account, balance sheet etc. of the respondent assessee and a new factual plea is raised that the assessee may not have sold the films during the year in question. It is also stated that Rule 9B would not be applicable, if conditions of sub Rule 5 were not satisfied. It is accordingly submitted that if the assessee had not sold or transferred the rights of exhibition of films et ..... X X X X Extracts X X X X X X X X Extracts X X X X
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