9911796707
TMI Blog2011 (12) TMI 668X X X X Extracts X X X X X X X X Extracts X X X X ..... sues raised herein are common, we are therefore, disposing them off by this consolidated order for the sake of convenience. Assessment Year 1998-99 2. The only issue raised in the assessee's appeal is against the confirmation of disallowance of ₹ 37,47,495 out of balance written off including advances given for development of music albums abandoned. Briefly stated the facts of this ground are that the assessee claimed deduction of bad debts towards the following amounts in the original assessment order passed u/s 143(3) on 05.02.2001:- (i) Album - Mohini Singh Project ₹ 1,37,515 (ii) Album - Pushpanjali Project ₹ 18,587 (iii) Aabha Film Production No.2 ₹ 10,00,000 (iv) Album - Vikas Bhalla Project ₹ 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT Vs. Mukta Arts Pvt. Ltd. vide its judgment dated 25th August, 2008 in Income Tax Appeal No.584 of 2001 considered a question whether the Tribunal was justified in holding that the cost of production of the abandoned film "Devaa" was trading loss. The learned Counsel on behalf of the Revenue conceded before the Hon'ble High Court that no question of law was involved and the appeal itself was misconceived in view of the fact that the film in question was admittedly not released and hence it was stock-in-trade and there was no question of the same being capital asset. The learned A.R. has placed on record a copy of this judgment available on page no.166 of the paper book. Another judgment dated 29th August, 2011 of the Hon'ble jurisdictiona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and in law the CIT(A) was justified in holding that 90% of the net commission and not 90% of the gross commission as held by the Assessing Officer is to be reduced from business income for computing the profit of business u/s 80HHC of the Income-tax Act." 7. Both the sides are in agreement that the facts and circumstances of these grounds are similar to those considered and decided by the Tribunal in assessee's own case in the immediately succeeding year i.e. assessment year 1999-2000. Copy of the said order dated 23.03.2011 in ITA No.2234/Mum/2010 has been placed on record. 8. On the perusal of the said order it is observed that the Tribunal has restored these matters to the file of A.O. for taking a fresh decision in the light of the ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the computation of deduction u/s 80HHF. The only issue is as to whether interest income earned by the assessee should be considered as falling under the head "Profits and gains of business or profession" or "Income from other sources" and the resulting consequence being 90% of such interest income should be deducted or not. From the ground it is apparent that the learned CIT(A) refused to adjudicate on the issue on the ground that the CIT had already passed order u/s 263 by directing the A.O. to assess the interest income under the head "Income from other sources". 13. After considering the rival submissions and perusing the relevant material on record it is observed that the order passed by the learned. CIT u/s 263 for the assessment yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law after allowing a reasonable opportunity of being heard to the assessee. 15. The Revenue has filed the following revised ground in its appeal:- "On the facts and in the circumstances of the case and in law, the CIT(A) was not justified in holding that 90% of interest should have been reduced from the profits of business for the purpose of computation of deduction u/s 80HHF of the I.T.Act, 1961 as against the order u/s 263 of the I.T.Act wherein it is held that 100% of the gross interest should have been reduced from the profits of business and it should have been taxed under the head "Income from Other Sources"." 16. It is observed that the only issue is about the decision as to whether interest income should be considered as falling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,09,117 being irrecoverable business advance written off and claimed u/s 37 of the Act. Both the sides are in agreement that the facts and circumstances of this ground are similar to those for assessment year 1998-99. While disposing of the appeal of the assessee for assessment year 1998-99 above, we have decided this issue in assessee's favour. In view of the admitted similarity of the facts, we allow this ground of appeal. 21. Ground no.3(i) is against the computation of deduction u/s 80HHF on the interest income which ground is similar to ground no.2(i) of assessment year 2003-2004. In view of the similarity of the facts of this ground with those of assessment year 2003-2004 decided above, we overturn the impugned order on this issue. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
