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2016 (5) TMI 960 - ITAT AHMEDABADAddition on account of ESOP - Held that:- The Hon’ble High Court of Madras in the case of PVP Ventures Ltd. [2012 (7) TMI 696 - MADRAS HIGH COURT] has allowed such claim as business expenditure and the Hon’ble High Court of Delhi in the case of Lemon Tree Hotels Ltd. [2015 (11) TMI 404 - DELHI HIGH COURT] has followed the decision of the Hon’ble High Court of Madras held that cost of ESOP could be debited in Profit and Loss account of the assessee. Treatment of entertainment tax exemption in respect of multiplexes as capital receipt - Held that:- Treatment to the entertainment tax exemption in respect of Multiplexes as capital receipt, not eligible to tax confirmed. Disallowance of expenditure on prints treating it as capital expenditure - CIT(A) directed to treat the print cost as revenue expenditure - Held that:- We have given a thoughtful consideration to the orders of the authorities below. Rule 9B of the Income Tax rules clearly and specifically provides that cost of prints cannot be included in the cost of acquisition of the exhibition rights in the film. Therefore, what can be carried forward are the cost of acquisition and not the cost of prints. In our considered opinion, the cost of prints has to be allowed in the year in which the expenditure is incurred. It is irrelevant as to what treatment the assessee has given in its books of accounts as held by the Hon’ble Supreme Court in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd. [1997 (7) TMI 4 - SUPREME Court].
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