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TMI Blog2019 (3) TMI 261X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. Allowable business expenditure - technical and management fees paid to M/s. Induslnd Media & Communications Ltd Held that:- Services rendered by M/s. Induslnd Media & Communications Ltd are technical and managerial, it has not filed any evidence either before the AO or before the CIT (A) to substantiate the claim. Even before us, no evidence is filed. Assessee only reiterated the submissions made before the authorities below and prayed that the issue may be remitted to the file of the AO before whom, the assessee is willing to file all the relevant evidence. The learned DR also reiterated the findings of the authorities below - remit the issue to the file of the AO with a direction to verify whether the assessee has actually made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the network rights are not intangible assets and therefore, depreciation is not allowable thereon. The AO treated the network rights as "goodwill" and observing that no depreciation is allowable on goodwill u/s 32(1)(ii) of the Act, he disallowed the claim of depreciation and brought it to tax. 4. Further, the AO also observed that the assessee has paid a sum of ₹ 18,75,000.- to M/s. Induslnd Media & Communications Ltd as technical and management fees. The AO required the assessee to furnish the nature and details of the services rendered by them and to substantiate the same with necessary evidence. Vide letter dated 24.02.2013, the assessee submitted as under: "During the year under assessment, company has paid a sum of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t filed any evidence on the nature of payment, services rendered, mode of payment etc. Aggrieved, the assessee is in further appeal before us by raising the following grounds of appeal: "1. On the facts and circumstances of the case and in law, the CIT (A) has erred in upholding a disallowance of ₹ 35,58,242/- by disallowing depreciation on "Network Rights" only on account of non-appearance as the hearing notice was not received by the appellant and ignoring the facts submitted along with the appeal. The learned CIT (A) has erred in law in not considering the payment made for transfer of the "Cable TV Network" and "Cable Network Associated Rights", as "Intangible Assets", since the payment represents acquisition of intangible rights ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Hon'ble Apex Court, we direct the AO to allow depreciation on "network Rights". 9. As regards Ground of Appeal No.2, we find that though the assessee has stated that services rendered by M/s. Induslnd Media & Communications Ltd are technical and managerial, it has not filed any evidence either before the AO or before the learned CIT (A) to substantiate the claim. Even before us, no evidence is filed. The learned Counsel for the assessee only reiterated the submissions made before the authorities below and prayed that the issue may be remitted to the file of the AO before whom, the assessee is willing to file all the relevant evidence. The learned DR also reiterated the findings of the authorities below. Having regard to the riv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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