DCIT, Hyderabad V. M/s Supreme Recording Co. Pvt. Ltd., Hyderabad

ITA 413/HYD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9948 (ITAT-HYDERABAD)
• Duration Of Justice: 9 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 18-03-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V MADHUVANI
• Assessee Lawyers: A MURALI MOHAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA NO.413/HYD/10 : ASSTT. YE AR 2006-07 DY. COMMISSIONER OF INCOME- TAX, CIRCLE 3(2), RANGE-3, HYDERABAD. V/S. M/S. SUPREME RECORDING CO. PVT. LTD. HYDERABAD. ( PAN AAECS 6138 A ) (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. V.MADHU VANI RESPONDENT BY : SHRI A.MURALI MOHAN O R D E R PER G.C.GUPTA, VICE PRESIDENT: THIS APPEAL OF THE REVENUE FOR THE ASSESSMENT YEAR 20 06-07 IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF IN COME-TAX (APPEALS). 2. GROUNDS OF THE REVENUE IN THIS APPEAL READ AS UNDE R- '1. THE ORDER OF THE CIT(A) IS ERRONEOUS BOTH ON FA CTS AND IN LAW. 2. THE CIT(A) SHOULD HAVE UPHELD THE DISALLOWANCE MADE ON THE GROUND THAT THE EXPENDITURE INCURRED FOR OBTAIN ING COPY RIGHTS IS CAPITAL IN NATURE.' 3. AT THE OUT SET, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE INVOLVED IN THE GROUNDS OF APPEAL OF T HE REVENUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE HYDER ABAD BENCH OF THE TRIBUNAL IN ASSESSEE'S OWN CASE FOR THE EARLIER ASSESSMENT YEA RS IN ITA NO.1024/HYD/2006 AND 23/HYD/2007 FOR THE ASSESSMENT YEARS 2002-03 ITA NO.413./HYD/10 M/S. SUPREME RECORDING CO. PVT. LTD.,HYD. 2 AND 2003-04 DATED 31.7.2007 AND IN ITA NO.1417/HYD/2 008 FOR THE ASSESSMENT YEAR 2005-06 DATED 4.12.2008. THE LEARNED D EPARTMENTAL REPRESENTATIVE COULD NOT CONTROVERT THE SUBMISSIONS OF T HE LEARNED COUNSEL FOR THE ASSESSEE. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND T HAT THE ISSUE OF DISALLOWANCE MADE WITH REGARD TO THE EXPENDITU RE INCURRED FOR OBTAINING COPY RIGHTS WAS CAPITAL IN NATURE, IS COVERED I N FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE COORDINATE BENCHES OF THE TRIBUNAL IN ASSESSEE'S OWN CASE FOR THE EARLIER ASSESSMENT YEARS NOTED ABO VE, WHEREIN THE TRIBUNAL DECIDING THE ISSUE IN FAVOUR OF T HE ASSESSEE, HELD THAT THE EXPENDITURE INCURRED FOR OBTAINING THE COPY RIGHTS IS ALLOWABLE AS DEDUCTION. WE BEING IN AGREEMENT WITH THE DECISIONS O F THE COORDINATE BENCH OF THE TRIBUNAL IN ASSESSEE'S OWN CASE CITED SUPRA, AN D THE ISSUE IN THE PRESENT APPEAL BEFORE THE TRIBUNAL BEING IDEN TICAL WITH THE ISSUE IN THE EARLIER ASSESSMENT YEARS DECIDED BY THE TRIBUNAL IN F AVOUR OF THE ASSESSEE, FIND NO JUSTIFICATION TO INTERFERE WITH THE OR DER OF THE CIT(A) AND ACCORDINGLY THE GROUNDS OF THE REVENUE IN THE PRESE NT APPEAL ARE REJECTED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE COURT ON 7.1.2011 SD/- SD/- (CHANDRA POOJARI) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 7TH JANUARY, 2011 ITA NO.413./HYD/10 M/S. SUPREME RECORDING CO. PVT. LTD.,HYD. 3 COPY FORWARDED TO: 1. M/S. SUPREME RECORDING CO. PVT. LTD., 5-1-753 SUPR EME HOUSE, BANK STREET, KOTI, HYDERABAD. 2. DY. COMMISSIONER OF INCOME-TAX, CIRCLE 3(2), HYDERA BAD 3. COMMISSIONER OF INCOME-TAX(APPEALS)-IV, HYDERABAD. 4. COMMISSIONER OF INCOME-TAX III, HYDERABAD 5. THE DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S