Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (7) TMI 1568 - ITAT MUMBAINature of expenses - annual payment being franchise fees paid to BCCI to participate in the Indian Premier League (IPL) - Revenue or capital expenditure - HELD THAT:- As relying on M/S DECCAN CHARGERS SPORTING VENTURES LTD. (AMALGAMATED WITH DECCAN CHRONICLE HOLDINGS LTD) [2015 (12) TMI 1279 - ITAT HYDERABAD] we do not find any merit for treating the assessee’s claim as capital expenditure, which is essentially revenue in nature. Accordingly we set aside the order of lower authorities and direct the AO to allow assessee’s claim of revenue expenditure. As we have already decided ground no.1 in assessee’s favour by holding that annual payment of ₹ 447.60 crores being franchise fees paid to BCCI to participate in IPL was revenue in nature, therefore, allowable during the year under consideration, we are not going to assessee’s alternate claim of allowing depreciation on the entire value of intangible rights, which is also supported by the decision of co-ordinate bench in case of India Cements Limited, India Cements Limited [2016 (1) TMI 1028 - ITAT CHENNAI]
|