COMMISSIONER OF INCOME TAX Vs. INTERNATIONAL AUDIO VISUAL

JUDGEMENT

(1.) 4716/Del/2004 relevant for the asst. yr. 1989 -90. 2. The assessee had claimed a deduction under s. 80HHC of the IT Act in respect of dubbing rights of Hindi films, which it says, it had sold to some foreign company. The AO did not agree that it was a sale by the assessee and concluded that it was not a sale of goods or merchandise but a receipt of royalty for transfer of dubbing rights.

(2.) In response to the notice for initiating penalty proceedings, the assessee reiterated that it had not concealed any income nor had it furnished any inaccurate particulars of income and prayed that the penalty proceedings be dropped. The AO rejected the contention of the assessee and imposed penalty under s. 271(1)(c) of the Act.

(3.) The appeal filed by the assessee before the CIT(A) was also dismissed. The second appeal filed by the assessee before the Tribunal was, however, accepted and that is how the Revenue is before us.