2011 (4) TMI 1334 - AT - Income Tax

Summary

Issues involved: Appeal by Revenue against CIT(A) order for assessment year 2007-08 regarding deduction on write off expenditure for abandoned film.

Comprehensive Details:

1. Issue of Deduction on Write Off Expenditure:
- The appeal was filed by the Revenue against the CIT(A) order directing the Assessing Officer to allow the claim of the assessee for deduction on account of write off expenditure incurred on the abandoned film for the assessment year 2007-08.
- The counsel for the assessee argued that the issue was similar to a previous Tribunal decision in the case of ACIT vs. M/s. Dream Merchants Enterprises, where the deduction was allowed for similar expenditure.
- The Tribunal in the earlier case had considered the matter and upheld the CIT(A)'s decision to delete the disallowance made by the Assessing Officer.
- The Tribunal in the current case followed the decision in the earlier case and upheld the CIT(A)'s order, giving relief to the assessee on this issue.
- Consequently, the appeal of the Revenue was dismissed.

2. Decision Basis on Similar Cases:
- The Tribunal considered the facts and arguments presented by both sides, noting that the CIT(A) had deleted the disallowance made by the Assessing Officer based on the earlier Tribunal decision.
- The Tribunal found no infirmity in the CIT(A)'s order as it was in line with the decisions of the Tribunal in similar cases.
- The Tribunal emphasized that the consistent decisions by the jurisdictional Tribunal in different cases supported the allowance of deduction for write off expenditure on abandoned films.
- The Tribunal rejected the Revenue's grounds of appeal and upheld the relief granted to the assessee by the CIT(A) based on the precedent set by previous cases.

3. Final Outcome:
- Ultimately, the Tribunal dismissed the appeal of the Revenue, affirming the decision of the CIT(A) to allow the deduction on account of write off expenditure for the abandoned film, in line with the earlier Tribunal decisions and the principles established in similar cases.