Music Broadcast Limited Vs. Asst. CIT-14(2)(2) & DCIT-14(2)(1)

Parties Involved

Facts Summary

The assessee, Music Broadcast Limited, is a company engaged in operating private FM Radio Station. The assessee filed its return of income on 28.09.2012, declaring total income at Rs. Nil. The case was selected for scrutiny under CASS, and notices under sections 143(3) and 142(1) of the Income Tax Act were issued. The Assessing Officer passed the assessment order on 16.03.2015, declaring total income at Rs.4,76,55,520/-. The assessee appealed to the first appellate authority, who partly allowed the appeal. Both the assessee and the Revenue are aggrieved by the order and have filed cross appeals. The assessee raised issues regarding the addition of INR 5,12,06,771 on account of non-reconciliation of tax deducted at source (TDS) data and the short grant of TDS credit of INR 57,122. The Revenue raised issues regarding the deletion of the addition on account of software license fee, the classification of interest income on bank FDs, and the disallowance under section 14A.…

Legal Issues

• 1. Addition of INR 5,12,06,771 on account of non-reconciliation of TDS data.
• 2. Short grant of TDS credit of INR 57,122.
• 3. Deletion of the addition on account of software license fee of Rs. 1,70,67,431/-.
• 4. Classification of interest income on bank FDs amounting to Rs.1,59,32,000/-.
• 5. Disallowance made u/s. 14A at 0.5% of the investment.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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