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2019 (2) TMI 1135 - AT - Income TaxNature of expenditure - expenditure on account of Franchise fees paid to BCCI for RIGHTS to participate in the Indian Premier League (IPL) - revenue or capital expenditure - Held that:- The revenue fails to bring on record any new facts contrary to the facts recorded by the ITAT in the light of certain judicial precedents. The revenue also failed to bring on record any contrary decision in its favour. Therefore, consistent with the view taken by the co-ordinate bench in assessee’s own case for earlier years, we are of the considered view that there is no error in the findings recorded by the CIT(A) while deleting addition made by the AO towards annual franchise fees paid to BCCI. Hence, we are inclined to uphold the order of CIT(A) and dismiss appeal filed by the revenue. Whether travelling expenses incurred on family members of players is incurred wholly and exclusively for the purpose of business and which is related to the business of the assessee was a subject matter of deliberations? - Held that:- Although the AR for the assessee tried to argue the case in light of certain judicial precedents that the presence of spouse of the players and their family members helped in attracting sponsors as well as provide moral support to the players which ultimately helps the business of the assessee. But, considering the fact that the issue and is already considered by the Tribunal keeping in view the judicial discipline, we are not inclined to accept the arguments of the AR for the assessee. Therefore, we affirm the addition made by the AO towards disallowance of travelling expenses incurred on family members of players. Adhoc disallowance of 10% of hospitality expenses - AO has disallowed 10% of hospitality expenses under the head ‘hospitality expenditure’ for providing lunch and other entertainment facilities to individuals in corporate boxes, VVIP area, etc. - Held that:- We are of the considered view that the AO was erred in making adhoc disallowance of 10% of hospitality expenditure. Therefore, we direct the AO to delete addition made towards hospitality expenses.
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