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TMI Blog2021 (4) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... nch of the Tribunal M/S THE INDIA CEMENTS LTD [ 2016 (1) TMI 1028 - ITAT CHENNAI] is applicable to the instant case. The order passed by the Tribunal is bereft of any reasonings and suffers from the vice of non application of mind. The Tribunal which is a final fact finding authority has to assign reasons in support of its decision. The impugned order therefore is cryptic and cannot be sustained in the eye of law. The same is therefore quashed and the matter is remitted to the Tribunal for afresh consideration of matter on merits by a speaking order in the light of relevant statutory provisions expeditiously. - I.T.A. NO.193 OF 2017 C/W I.T.A. NO.194 OF 2017 I.T.A. NO.195 OF 2017 I.T.A. NO.196 OF 2017 - - - Dated:- 24-3-2021 - HON ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t order of the Tribunal is perverse in nature ? 2. Facts giving rise to filing of these appeals briefly stated are that in the year 2008, Board of Control for Cricket in India (BCCI) announced that the T20 cricket league namely 'Indian Premier League' shall be held. In pursuance thereof, tenders were invited i.e. bids to form cricket teams for eight regions in India on a franchise basis. The assessee is a holding company i.e. G.M.R. Holdings Pvt. Ltd. Participated in the said tender and won the franchise for Delhi region. The assessee was incorporated as a special purpose vehicle to operate as a franchise and a franchise agreement dated 10.04.2008 was entered into with BCCI. As a consideration for right to operate the franchise, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h has been incurred in terms of franchise agreement and only payment has been deferred in 10 annual equal installments. The revenue filed an appeal whereas the assessee filed a cross-objection against the order passed by the Commissioner of Income Tax (Appeals). The Tribunal, vide impugned order dated 29.07.2016, has allowed the cross-objection preferred by the assessee and has dismissed the appeal preferred by the revenue. In the aforesaid factual background, these appeals have been filed. 4. Learned counsel for the revenue submitted that the assessee under the franchise agreement is required to pay ₹ 3,36,00,000/- on the eve of match and the amount under the agreement is divided in 10 equal installments. It is further submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hise fee payment creates an intangible asset being licence or franchisee akin to licence or franchisee referred to under Section 32(1)(ii) of the Act. It is also urged that depreciation means a systematic allocation of the depreciable amount of an asset over its useful life. In support of aforesaid submission, reliance has been placed on the decision of the Supreme Court in Civil Appeal No.1709/2008 dated 03.03.2008 and decision of ITAT, Bombay Bench in ITA.1307/Mum/2013 dated 29.12.2017. 5. On the other hand, learned Senior counsel for the assessee submitted that when the assessee was declared a successful bidder, it had to pay a sum of ₹ 3,36,00,000/- to the BCCI to acquire the franchise rights and the franchise agreement en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the substantial question of law involved in this appeal is required to be answered in favour of the assessee and against the revenue. In support of aforesaid submission, reliance has been placed on the decision of the Supreme Court in 'SAHARANPUR ELECTRIC SUPPLY CO. LTD. Vs. COMMISSIONER OF INCOME-TAX' (1992) 60 TAXMAN 412 (SC) and decision of Bombay High Court in 'PRINCIPAL COMMISSIONER OF INCOME TAX-3 Vs. V. HOTELS LTD.' (2020) 119 TAXMANN.COM 487 (BOMBAY). 6. We have considered the submissions made on both sides and have perused the record. Before proceeding further, we may refer to the relevant extract of the order passed by the Tribunal which reads as under: 18. We find that this issue is covered by the deci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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