PVR Inox Limited Vs DCIT (ITAT Mumbai)
Summary: The appeal was filed by PVR INOX Limited against the order dated 28.01.2026 passed by the CIT(A), arising from proceedings under sections 201(1) and 201(1A) of the Income-tax Act, 1961 for AY 2013-14. The proceedings originally concerned Inox Leisure Limited, which subsequently amalgamated with PVR Limited, now PVR INOX Limited, with effect from 01.01.2023 pursuant to an NCLT-approved scheme. Ground No. 1 concerning alleged violation of natural justice and denial of a personal hearing through video conference was not pressed and was dismissed.
The substantive dispute concerned whether the convenience fee collected from customers and retained by Big Tree Entertainment Private Limited, which operated the online ticketing platform under the brand “BookMyShow”, attracted tax deduction at source under section 194H. Under the agreement dated 30.03.2011, customers used BookMyShow’s digital platform to select the city, cinema, show and seat and make payment. BookMyShow generated a voucher against which the customer obtained the cinema ticket from the assessee. The customer payment comprised the cinema ticket’s face value and a separate convenience fee charged by BookMyShow for the online booking facility. BookMyShow was required to remit the entire ticket value and ₹7.25 per ticket out of the convenience fee to the assessee, while retaining the balance. It also guaranteed payment to the assessee for booked tickets irrespective of recovery from customers.
