TMI Blog2018 (10) TMI 1163X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - ITA No.59/Bang/2015 - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... izes T-20 format cricket matches. The return of income for the assessment year 2010-11 was filed on 01/10/2010 declaring loss of ₹ 91,10,62,798/- and subsequently revised loss at ₹ 26,55,04,799/-. Against the said return of income the assessment was completed vide order dated 22/02/2013 passed u/s 143(3) of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short] at total loss of ₹ 25,58,57,798/-. The disparity between the returned loss and the assessed loss is on account of disallowance of amount of contribution made to Karnataka State Cricket Association (KSCA), Bengaluru, for construction of Cricket Academy of ₹ 45 lakhs and also disallowance of ticketing expenses of ₹ 51,47,000/-. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing expenses of ₹ 51,47,000/- it is submitted that one of the major sources of assessee s income is income from sponsorship with United Spirits Ltd., being one of the chief sponsors. As per this sponsorship agreement, the assesseecompany had obligation to provide free hospitability and provide free tickets in lieu of consideration received from its sponsors. He further submitted that the AO never doubted the genuineness of the expenditure. As the tickets were purchased and issued in the business interest of the company the same should be allowed as deduction. The expenditure was incurred to maintain good relations and by keeping representatives of foreign collaborators in good humour and therefore, should be allowed as a business expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate Sides/ associations in South Africa / Australia /England 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. As regards the ticketing expenses, there is neither doubt about genuineness of the expenditure nor that the expenditure incurred was for busi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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