CIT Vs. GIZA IMPEX P. LTD

JUDGEMENT

(1.) THE above tax case appeals are directed against the common order of the Income Tax Appellate Tribunal dated 17 -2 -2006, made in I. T. A. Nos. 1363 and 1364/Mds/2002 and 1135 and 1136/Mds/2005 for the assessment years 1994 -95 to 1997 -98 respectively, raising the following common substantial questions of law: 1. Whether, on the facts and circumstances of the case, the Tribunal was right in holding that there was no dispute about the allowability of deduction under Section 80HHC in respect of the transfer/ export of the master copies of the film songs and music along with the rights to make copies and sell cassettes outside India ?

(2.) WHETHER , on the facts and circumstances of the case, the Tribunal was right in treating the transfer/export of the master copies of the film songs and music along with the rights to make copies and sell cassettes outside India as a sale of goods or merchandise for the purpose of deduction under Section 80HHC of the Income Tax Act, 1961 ? The revenue is the appellant. The relevant assessment years are 1994 -95 to 1997 -98. The assessee is a company engaged in the business of export of Digital Audio Tape Master (DAT Master) containing the recorded version of film songs from Tamil feature films for exploitation overseas and the assessee claimed deduction under Section 80HHC of the Income Tax Act (for brevity, 'the Act'). The assessing officer disallowed the claim of the deduction under Section 80HHC of the Act on the ground that the exploitation rights in the film songs and music in feature films to overseas assignee would not constitute export of goods for the purpose of deduction under Section 80HHC of the Act.

(3.) ON further appeals by the revenue, the Tribunal following the decision of the Bombay High Court in Abdulgafar A. Nadiadwala v. Asst. CIT : [2004]267ITR488(Bom) allowed the appeals in favour of the assessee. Hence the present appeals.