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2016 (1) TMI 126 - AT - Income TaxTDS u/s 194J - outright purchase of copyright - non deduction of TDS - Assessee in default - Held that:- The assessee is an Indian company engaged, inter alia, in the business of manufacture and sale of audio cassettes, CDs etc. and also in production of films/TV Serials and in its course of business activities assessee made payments for acquisition of copyright of music/films from the music producers, i.e. transfer of ownership of copyrights for a lump sum consideration. The assessee is not dealing in copyrights or sale or purchase of copyrights is not its business. Accordingly, the transaction was a transaction of outright purchase of copyright and not a mere payment for past and future royalties. The price paid for outright purchase of copyright was price paid for acquiring a capital asset. Accordingly, we are of the view that neither AO nor CIT(A) was justified in treating the assessee in default for not deducting TDS on these transactions. - Decided in favour of assessee.
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