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2011 (5) TMI 20 - AT - Income TaxDeduction u/s 80RR - Business income or other sources - the assessee derived income from salary, income from other sources as a cricketer and income from modelling/sponsorships shown as "income from business/profession - the assessee has received an amount of Rs. 19,92,27,085/- as gross receipts from sports sponsorship and advertisements which included an amount of Rs. 5,92,31,211/- received in convertible foreign exchange from ESPN Star Sports, Pepsico Inc and VISA - the assessee in the instant case has declared income from playing cricket as "income from other sources" on the ground that he is only a cricketer and is not a professional cricketer The categories of persons to whom s. 80RR allows a deduction are (i) authors; (ii) playwrights; (iii) artists; (iv) musicians; (v) actors; and (vi) sportsmen, including athletes - the assessee, while appearing in advertisements and commercials, has to face the lights and camera - Held that: the amount of Rs. 5,92,31,211/- received by the assessee amounts to income derived by the assessee in the exercise of his profession as an artist and therefore entitled to deduction u/s 80RR of the Act the assessee had claimed an amount of Rs. 57,969/- towards staff welfare expenses - Since the expenses claimed were in cash and were unverifiable in nature - CIT(A) restricted the same to Rs. 5000/-, which in our opinion is reasonable under the facts and circumstances of the case Regarding entertainment expense - the CIT(A) restricted the disallowance to Rs. 50,000/- on the ground that the disallowance made on estimated basis appears to be on higher side. Car expenses - Admittedly, no log book has been maintained by the assessee, therefore, personal use of motor car for self and other family members cannot be ruled out. Accordingly, the disallowance of 1/5th of the motor car expenses amounting to Rs. 1,42,824/-being very reasonable under the facts and circumstances is justified.
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