Dismissing the appeal of the revenue the Tribunal held that ,payment to film distributors for purchase of films for exhibition being specifically excluded from the definition of Royalty under section 9(1)(vi), tax is not deductible under section 194J of the Act on such payment.Accordingly no disallowances can be made. (ITA Nos. 388/Ahd/2018 & 1808/Ahd/2017 dt.12-03 2019) (AY 2013-14 & 2014-15)
ITO v. Eylex Films Pvt. Ltd. (2019) 71 ITR 332 (Ahd.)(Trib.)
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Payment to film distributors for purchase of films for exhibition-Not liable to deduct tax at source-No disallowances can be made. [S. 9(1)(vi), 194J]