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2010 (2) TMI 745 - AT - Income TaxMedical expenditure - Revenue or personal expenditure - According to the Assessing Officer hospitalisation of the assessee has no way affected the shooting schedule. The medical report also establishes that the assessee suffered from cancer which is not a sudden development. Moreover, the entire shooting schedule in USA was insured and the assessee had paid the insurance premium of Rs.11,81,071 for the film which has been included in the cost of production. Therefore, this insurance should cover the assessee also as producer. Rejecting the various judicial decisions cited before him, the Assessing Officer held that the medical expenses of Rs.31,73,816 is not wholly and exclusively incurred for the purpose of business. He accordingly disallowed the above amount. Held that:- insurance company has clarified that no policy cover for life or health is available to Shri Yash Johar in India or abroad since he has crossed the age of 70 years. We find the issue stands covered in favour of the assessee by the decision of the jurisdictional High Court in the case of Mehboob Productions Pvt. Ltd. (1974 -TMI - 39159 - BOMBAY High Court) which has been relied upon by the CIT(A). - Deduction allowed - decided in favor of assessee. Disallowance of expenses on Ad hoc basis - Assessing Officer disallowed an amount of Rs.5 lakhs on ad-hoc basis on the ground that the assessee has incurred huge expenses under various heads which includes cash expenses, some of which are supported by self made vouchers only which are not fully verifiable. Further there are huge cash expenses incurred during the foreign shooting. - held that: - Since the accounts of the assessee are audited and no specific instance has been brought on record by the Assessing Officer as to which is the expenditure which according to him is not fully supported with vouchers, therefore, we do not find any infirmity in the order of the CIT(A) deleting the ad hoc disallowance made on the basis of presumptions and guesswork. - Decided in favor of assessee.
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