TMI Blog2018 (8) TMI 1802X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER Per G Manjunatha, AM : This appeal filed by the revenue is directed against order of the CIT(A)-3, Mumbai dated 16-12-2016 and it pertains to AY 2010-11. The revenue has raised the following grounds of appeal:- 1. Whether on the facts, in the circumstances of the case and as per law, the Ld. CIT(A) has erred in directing to delete the addition of audio right expenses amounting to ₹ 2,09,48,337/- holding the same as revenue expenses without appreciating that the expenses incurred are of enduring nature and categorically falls under the head of capital expenses . 2. Whether on the facts, in the circumstances of the case and as per law, the Ld. CIT(A) has erred in directing to delete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on purchase of master plate for producing audio video cassettes and CDs is revenue in nature. The CIT(A), after considering relevant submissions of the assessee and also by following the decision of ITAT, Mumbai in assessee s own case for earlier year held that expenditure incurred towards purchase of master plates for producing audio video cassettes CDs is revenue in nature. Aggrieved by the order of CIT(A), the revenue is in appeal before us. 3. The Ld.AR for the assessee, at the time of hearing, submitted that the issue is squarely covered in favour of the assessee by the decision of ITAT, E-Bench, Mumbai in assessee s own case for AY 2009-10 in ITA No.7222/Mum/2012 wherein under similar circumstances, the ITAT held that e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground No. 1, the Tribunal has dealt with this issue at para 3.1 of its order in I.T.A.No.2407/M/08 which is reproduced hereunder for easy reference- 3.1 Ground No.l is on the issue of allowability of Expenditure incurred on purchase of audio rights treated by the assessing officer as capital expenditure. The assessee is engaged in the business of manufacture and sale of audio rights and CDs and for this purpose it purchases audio rights of film songs from producers. Expenditure incurred on purchase of audio rights, music for which is released [accepted as audio rights] is treated by the assessee as revenue expenditure. The income-tax department has been since assessment year 1990-91, disallowing the claim of the assessee on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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