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2015 (9) TMI 1105 - AT - Income TaxTDS u/s 194J - satellite right transferred in favor of assessee for a period 99 - Disallowance u/s 40(a)(ia) - mere satellite right without permanently transferring the right to the assessee for a particular period, is subject to deduction of TDS under Section 194J as per revenue - Held that:- The transfer in favour of the assessee for a period 99 years is sale, therefore, it was excluded from the definition of royalty. In this case also, as we have extracted above from the Schedule, the right transferred to the assessee is to telecast the feature film in extra terrestrial areas for a perpetual period of 99 years. As found by the High Court, the copyright subsists only for a period of 60 years. Therefore, the right given to the assessee beyond the period of 60 years has to be treated as sale of the right for cinematographic film. Hence, this Tribunal is of the considered opinion that the decision of this Tribunal in Shri Balaji Communications (2013 (2) TMI 373 - ITAT CHENNAI) may not be applicable to the facts of the case. This Tribunal is of the considered opinion that the judgment of Madras High Court in the case of K. Bhagyalakshmi (2013 (12) TMI 1215 - MADRAS HIGH COURT) would be squarely applicable wherein held that the findings of the First Appellate Authority was perfectly justified in holding that the transfer in favour of the assessee as sale and therefore, excluded from the definition of "Royalty" as defined under clause (v) to Explanation (2) of Section 9(1) of the Act - Decided in favour of assessee.
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