DDIT(IT) 2 (1), MUMBAI v. M/S STAR ASIAN MOVIES LTD., MUMBAI

ITA 3806/MUM/2010 | 2007-2008
Pronouncement Date: 27-07-2011 | Result: Dismissed

Appeal Details

RSA Number 380619914 RSA 2010
Assessee PAN AAICS2535B
Bench Mumbai
Appeal Number ITA 3806/MUM/2010
Duration Of Justice 1 year(s) 2 month(s) 15 day(s)
Appellant DDIT(IT) 2 (1), MUMBAI
Respondent M/S STAR ASIAN MOVIES LTD., MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 27-07-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted E
Tribunal Order Date 27-07-2011
Assessment Year 2007-2008
Appeal Filed On 12-05-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES E MUMBAI BEFORE SHRI J.SUDHAKAR REDDY (A.M.) AND SMT ASHA VI JAYARAGHVAN (J.M.) ITA NO.3803/MUM/2010 ASSESSMENT YEAR : 2007-2008 ITA NO.3804/MUM/2010 ASSESSMENT YEAR : 2007-2008 ITA NO.3806/MUM/2010 ASSESSMENT YEAR : 2007-2008 THE ADDL. C.I.T.-2(1) R.NO.120 1 ST FLR. SCINDIA HOUSE BALLARD ESTATE N.M. ROAD MUMBAI 400 038. VS. M/S. STAR TELEVISION ENTERTAINMENT LTD. 18 TH FLR. EXPRESS TOWERS NARIMAN POINT MUMBAI 400 021. PAN : AAICS2535B (APPELLANT) (RESPONDENT) DEPARTMENT BY : SHRI G.P. TRIVEDI (DR) ASSESSEE BY : SHRI DIVESH CHAWLA O R D E R PER J. SUDHAKAR REDDY A.M. ALL THESE APPEALS ARE FILED AGAINST SEPARATE BUT ID ENTICAL ORDERS OF THE CIT(A)-II MUMBAI DATED 17.02.2010. AS ISSUE ARIS ING IN ALL THESE APPEALS IS COMMON FOR THE SAKE OF CONVENIENCE THEY ARE HEAR D TOGETHER AND DISPOSED OF BY WAY OF THIS COMMON ORDER. 2. THE FACTS OF THE CASE ARE GIVEN IN PARA 1 TO 1.3 OF THE CIT(A) ORDER AT PAGE 2 ARE EXTRACTED FOR REFERENCE: 1. BACKGROUND OF THE CASE 1.1 STAR TELEVISION ENTERTAINMENT LIMITED (STEL) IS A COMPANY INCORPORATED IN BRITISH VIRGIN ISLANDS AND IS ENGAGED IN THE MEDIA INDUSTRY. STEL DURING THE SUBJECT FIN ANCIAL YEAR OWNED AND OPERATED CERTAIN SATELLITE TELEVISION CHA NNELS BEING STAR PLUS AND STAR WORLD (COLLECTIVELY CHANNELS) OV ER THE PAN ASIAN REGION. DURING THE SUBJECT FINANCIAL YEAR THE APPELLANT SOLD ADVERTISING AIRTIME INVENTORY ON THE CHANNELS TO SATELLITE TELEVISION ASIAN REGION LIMITED (STAR LTD.) A NON -RESIDENT COMPANY INCORPORATED IN AND A TAX RESIDENT OF HONG KONG ITA NO.3803/MUM/2010 ITA NO.3804/MUM/2010 ITA NO.3806/MUM/2010 2 ENGAGED IN THE BUSINESS OF SELLING AD AIRTIME ON SA TELLITE TV CHANNELS. 1.2 THE APPELLANT FILED ITS ORIGINAL RETURN OF INCO ME ON OCTOBER 31 2007 DECLARING AN INCOME OF ` 107 00 70 000/-. THE SAID RETURN OF INCOME WAS BASED ON THE UNAUDITE D FINANCIAL STATEMENTS OF THE APPELLANT. THEREAFTER THE APPELLANT REVISED ITS RETURN OF INCOME ON SEPTEMBER 30 2008 REVISING THE TOTAL INCOME TO ` 116 40 83 994/-. THE APPELLANT ALONG WITH ITS GROUP ENTITIES HAS FILED AN APPLICATION BEFORE SETT LEMENT COMMISSION (SETCOM) FOR PREVIOUS YEARS. WITHOUT PR EJUDICE TO ITS PAST CONTENTIONS AND STAND WITH A VIEW TO BUY PEACE OF MIND AND AVOID PROTRACTED LITIGATION INCOME FOR TH E YEAR UNDER CONSIDERATION WAS OFFERED TO TAX IN LINE WITH AND O N THE BASIS ADOPTED WHILE FILING THE APPLICATIONS BEFORE THE SE TCOM BY THE APPELLANT AND ITS GROUP ENTITIES. 1.3 THE ASSESSING OFFICER (HEREINAFTER THE ASSESSIN G OFFICER ) ISSUED INTIMATION WIDE SECTION 143(1) OF THE I.T. ACT DATED 05.12.2008 ACCEPTING THE TAXABLE INCOME OFFER ED BY THE APPELLANT IN ITS REVISED RETURN OF INCOME. HOWEVER THE ASSESSING OFFICER LEVIED INTEREST UNDER SECTION 234 B AND 234C OF THE I.T. ACT AMOUNTING TO ` 41 24 840/- AND ` 83 39 081/- RESPECTIVELY. 3. IN ALL THE THREE REVENUE APPEALS THE SOLE GROUND FOR CONSIDERATION IS AS FOLLOWS: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW WHETHER THE LEARNED CIT(A) WAS CORRECT IN HOLDING T HAT WHEN DUTY IS CAST ON THE PAYER TO PAY TAX AT SOURCE NO INTEREST U/S.234B AND 234C CAN BE IMPOSED ON THE PAYEE ASSES SEE IGNORING THE FACT THAT IT IS THE LIABILITY OF THE P AYEE TO PAY ADVANCE TAX EVEN ON THE AMOUNT WHICH HAD NOT BEEN D EDUCTED AT SOURCE U/S.195 OF THE I.T. ACT 1961. 4. AFTER HEARING RIVAL PARTIES WE FIND THAT THE IS SUE IS COVERED IN FAVOUR OF THE ASSESSEE BUT THE DECISION OF JURISDICTIONAL HIGH COURT IN THE CASE OF DIRECTOR OF INCOME TAX (INTERNATIONAL TAXATION) VS. NGC NETWORK ASIA LLC (2009) 313 ITR 187 (BOM) HAS HELD THAT THE DUTY IS CAST ON THE PAYER TO PAY TAX AT SOURCE ON FAILURE NO INTEREST CAN BE IMPOS ED ON THE ASSESSEE. RESPECTFULLY FOLLOWING THE SAME WE UPHOLD THE ORDER OF THE LEARNED CIT(A) AND DISMISS ALL THE THREE APPEALS OF THE REVENUE. ITA NO.3803/MUM/2010 ITA NO.3804/MUM/2010 ITA NO.3806/MUM/2010 3 4. IN THE RESULT APPEAL OF THE REVENUE ARE DISMISS ED. ORDER PRONOUNCED ON THIS 27 TH DAY OF JULY 2011. SD/- (ASHA VIJAYARAGHAVAN) (JUDICIAL MEMBER) SD/- (J.SUDHAKAR REDDY) (ACCOUNTANT MEMBER) MUMBAI DATED 27.07.2011. JANHAVI COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. COMMISSIONER OF INCOME TAX (APPEALS)-XVI MUMBA I 4. COMMISSIONER OF INCOME TAX CITY- MUMBAI 5. DEPARTMENTAL REPRESENTATIVE BENCH MUM BAI //TRUE COPY// BY ORDER ASSTT. REGISTRAR ITAT MUMBAI