Where assessee had agreed to pay 5 per cent of total advertising receipts as infrastructure fee and claimed deduction on gross advertising bills, the Tribunal was justified in restricting the deduction to 5 per cent of actual advertising receipts as reflected in the profit and loss account and in accordance with the agreement; accordingly, the order of the Tribunal was upheld. (AY. 1993-94)
Star Time Communication (I) (P.) Ltd. v. CIT [2025] 174 taxmann.com 753 (Bom)(HC)
S. 37(1): Business expenditure-Infrastructure fee-Advertising receipts-Tribunal was justified in restricting deduction to 5 per cent of actual receipts in accordance with the agreement and not on the gross advertising bill-Order of Tribunal affirmed. [S.145, 260A]
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