2010 (9) TMI 1104 - AT - Income Tax

Summary

Issues involved: Appeal against order of CIT(A) regarding allowance of write off expenditure for abandoned film for assessment year 2006-07.

Summary:
The appeal by the revenue challenges the CIT(A)'s direction to allow the claim of write off expenditure for an abandoned film. The main issue is whether the CIT(A) was justified in directing the AO to allow the claim of written off expenditure for the abandoned film. The assessee had debited expenses incurred on the production of an abandoned project, which were written off as there was no chance of recovery. The AO disallowed this claim, adding the sum to the total income of the assessee. However, the CIT(A) allowed the claim based on precedents set by the Tribunal in similar cases. The Tribunal noted that the issue was covered by previous decisions and upheld the CIT(A)'s order, dismissing the revenue's appeal. The decision was pronounced on 30.9.2010.