Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2013 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (4) TMI 136 - GUJARAT HIGH COURTRevenue expenses or capital expenses - expenses was incurred for production of animation film - commission expenses - Valuation on the basis of certificate - Held that:- in the previous year relevant to the Assessment Year, the assessee had not sold the project which was shown in the earlier year as work in process - there is no evidence on record that any revenue was generated from the said project and there was any chance of recovery. In the previous year relevant to the Assessment Year, the assessee – Company had written off the said amount by debiting Profit and Loss account as animation film, which was made in the year 2001, became out of date - deduction allowed - Decided in favor of assessee. Regarding allowability of Commission - Held that:- The Commissioner of Income Tax (Appeals) specifically found that the assessee had paid commissions in the past years also and the same had been allowed by the Assessing Officer in the previous years and the assessee had deducted 'Tax Deducted at Source' for commission payments and the commission had been paid to three agents who have brought business and added clients there was no justification for disallowance of commission - Deduction allowed - decided in favor of assessee. Valuation of work in progress - Certificate of Valuation - Held that:- The assessee had completed the projects in May and June 2006 and on the basis of the bills raised for these projects aggregating Rs.8,28,895=00, the assessee had valued the work in process as on 31st March 2006 at Rs.3,75,500=00 as per the certificate of the Officer In-charge of the projects. - the finding cannot be said to be based on 'No Evidence' nor can it be said to be based on any inadmissible evidence - Decided in favor of assessee and against the revenue.
|