Assessee amortized the “inventories” as per the method of accounting consistently followed by him over the years. AO made on account of expenditure in respect of programs and film rights by treating purchase cost of programs and film rights as intangible assets and allowing deprecation @25%. CIT(A) deleted addition. Dismissing the appeal of the revenue the Tribunal held that assessee amortized “inventories” as per method of accounting consistently followed by him over years. Appeal of revenue was dismissed. (AY.2011-12)
ACIT v. Zee Media Corporation Ltd ( 2018) 193 TTJ 36 (UO) (Mum.) (Trib.)
S. 37(1) : Business expenditure—Purchase cost of programs and film rights—Amortisation of inventories–Consistent method of accounting–AO is not justified in treating programs and film rights as intangible assets and allowing deprecation @ 25%. [S. 32(2)(ii)]