Production and broadcasting of radio programme is manufacture or production under Sec. 32(1)(iia)

Issue

Whether assessee engaged in business of production or broadcasting of radio programmes could be said to be a manufacturer or producer of any article or thing so as to be entitled to additional depreciation under Section 32(1)(ii).

The Delhi High Court held in favour of assessee as under-

1)  The production of radio programmes involves the processes of recording, editing and making copies prior to broadcasting. When the radio programme is made there comes into existence a 'thing' which is intangible, and which can be transmitted and even sold by making copies.

2)  Therefore, it can definitely be stated that the radio programme produced by the Assessee is 'thing', if not an 'article’ as Dictionary meaning of the word envisages that "thing" could have intangible characteristic.

3)  The word 'manufacture' envisages subjecting any material or thing to certain processes in order to produce something which has a distinct characteristic. Hence, 'manufacture' includes various combinations of processes.

4)  In the context of 'broadcast', it includes the processes of producing, recording, editing and making copies of the radio programme followed by its broadcasting.

5)  Thus, assessee engaged in business of production or broadcasting of radio programmes could be said to be a manufacturer or producer of any article or thing so as to be entitled to additional depreciation under Section 32(1)(ii)- CIT v. Radio Today Broadcasting Ltd. [2015] 64 taxmann.com 164 (Delhi)