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2015 (8) TMI 1154 - AT - Income TaxTDS liability - purchase of telecast rights from the film producers - whether is not in the nature of ‘royalty’ payment and therefore not liable for TDS u/s 194J - Held that:- What the assessee has paid to the producers is consideration towards acquisition of satellite rights over the films for a period of 99 years, which is also irrevocable. This finding of fact recorded by the ld CIT (A) has not been controverted by the ld DR by bringing any evidence on record. Thus, once it is established that the assessee has acquired an irrevocable right over the exhibition of films for a period of 99 years, it cannot be said that payments made for acquiring such rights is in the nature of royalty. Rather it is a consideration paid towards outright purchase of feature films to be exhibited through Television. Payments made by assessee towards acquiring satellite rights of films are not ‘royalty’, hence provisions of section 194J would not apply. In the aforesaid view of the matter, we uphold the order of ld CIT (A) by dismissing the grounds raised by the Department. See Mrs. K. Bhagyalakshmi Versus The Deputy Commissioner of Income Tax [2013 (12) TMI 1215 - MADRAS HIGH COURT ] - Decided in favour of assessee.
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