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2010 (6) TMI 53 - HC - Income TaxDesign Fees – Deduction u/s 80RR - The deduction was claimed in respect of the design fees received by the assessee from persons not resident in India in convertible foreign exchange. The Assessing Officer rejected the claim of the assessee, holding that the assessee was not an author, or a playwright, artist, musician, actor or sportsman and hence did not fall within one of the categories to whom a deduction can be allowed – CIT confirmed the order of AO and disallowed the deduction – ITAT allowed the deduction u/s 80RR – Held that: - Simply stated, an artist is a person who engages in an activity which is an art. Artists, as we understand them, use skill and imagination in the creation of aesthetic objects and experiences. Drawing, painting, sculpture, acting, dancing, writing, film making, photography and music all involve imagination, talent and skill in the creation of works which have an aesthetic value. A designer uses the process of design and her work requires a distinct and significant element of creativity. The canvass of design is diverse and includes graphic design and fashion design. An artist, as part of his or her creative work, seeks to arrange elements in a manner that would affect human senses and emotions. Design, in a certain sense, can be construed to be a rigorous form of art or art which has a clearly defined purpose. Though the field of designing may be regarded as a rigorous facet of art, creativity, imagination and visualization are the core of design. Dress designing has assumed significance in the age in which we live, influenced as it is by the media and entertainment. As a dress designer, the assessee must bring to his work a high degree of imagination, creativity and skill. The fact that designing involves skill and even technical expertise does not detract from the fact that the designer must visualize and imagine. A designer is an artist. – Deduction u/s 80RR allowed
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