Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 1163 - AT - Income TaxDisallowing expenditure on account of contribution to cricket academy by holding it as capital expenditure - nature of expenditure - allowable business expenditure - Held that:- It is stated that at the time of admission of player to the Academy, the (KSCA) shall ensure that the player shall sign a contract giving the appellant first right to offer an uncapped player contract to recruit the player to play for the appellant. Thus it is clear that the terms of contract are directly related to business interest of the assessee. Therefore, the contribution made for creation of Cricket Academy can be held to be in business interest and the same is allowable as deduction. Accordingly, we allow this ground of appeal. Ticketing expenses allowance - Held that:- There is neither doubt about genuineness of the expenditure nor that the expenditure incurred was for business purpose. Undoubtedly, this expenditure incurred by the assessee was to promote goodwill and enhance the business interest and therefore, the same is allowable as a business deduction in the light of the decision of CIT vs. Avery Cycle Inds. Ltd. [2006 (9) TMI 96 - PUNJAB AND HARYANA HIGH COURT] and Karjan Co-operative Cotton Sales Ginning & Pressing Society vs. CIT [1992 (1) TMI 39 - GUJARAT HIGH COURT] - Assessee appeal allowed.
|