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TMI Blog2014 (11) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... on account of his professional calling as an actor - While major part of the claim was disallowed under Section 40A(3) of the Act, the CIT(A) found that there is reasonableness in the claim of the assessee insofar as the expenses incurred towards travelling, wig, makeup, costumes, etc. - The CIT(A) has decided the issue on the basis of the statement made by the assessee and taking into consideration the overall expenditure claimed under various heads, thought it fit to allow the expenditure in a sum of ₹ 25 Lakhs under these heads for the assessment year 2007-2008 and ₹ 35 Lakhs for the assessment year 2008-2009 – as such no substantial question of law arises for consideration – Decided against revenue. - T. C. (A). Nos. 339 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ho has allowed further relief when the Assessing Officer has determined the expenditure based on the books of accounts and bank statements? 2. Though the wordings of the Tribunal giving reasons in support of the order dismissing the appeals filed by the Revenue before the Tribunal may not be appropriate in language, we find that there is some justification to accept the plea made by the respondent/assessee for certain allowable expenditure, which he had claimed before the Assessing Officer and the Commissioner of Income Tax (Appeals) and was partly allowed by the Commissioner of Income Tax (Appeals) in favour of the assessee. 3.1. The facts in a nutshell are as under: The assessee claims to be a leading film artist. There was a search ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , health and gymnasium, dance and fight master, stills and publicity, telephone charges, travelling expenses, etc. The Commission of Income Tax (Appeals), considering the nature of expenses incurred by the assessee, deleted the addition of ₹ 25,00,000/- and ₹ 35,00,000/- for the assessment years 2007-2008 and 2008-2009 respectively. 3.5. Aggrieved by the order of the Commissioner of Income Tax (Appeals), the department preferred appeals before the Tribunal, which confirmed the order passed by the Commissioner of Income Tax (Appeals) and dismissed the appeals filed by the department. Hence, the Revenue has filed these appeals on the questions of law, referred supra. 4. We have heard Mr.M.Swaminathan, learned Standing Counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- by holding them as not relevant for the purpose of business and also on the ground that the expenses were not supported by necessary evidences. In this regard, the ld.AR has admitted that there are no supporting evidences to prove the claim. However, considering the nature of expenses which a film actor incurs, he requested to take a lenient view. I have duly considered the matter. Additions of ₹ 11,27,100/- and ₹ 24,65,149/- have already been sustained in this order. There is no dispute regarding rendering of professional services by the appellant. He has also offered professional receipts as his income. Though there is no supporting evidences, the incurring of expenditure by the appellant actor at different places where sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gymnasium, dance and fight masters, stills and publicity, telephone charges, travelling expenses etc. It would be fair and reasonable if further expenses of ₹ 35,00,000/- is allowed towards this end. Accordingly, addition of ₹ 35,00,000/- is deleted and the balance addition is confirmed. Hence, the ground is partly allowed. 7. The Tribunal confirmed the order passed by the Commissioner of Income Tax (Appeals) holding as follows: 14. .... Being a professional actor, there is substantial merit in the claim of the assessee that travelling expenditure, wig and makeup expenditure would have been incurred by him for keeping up the profile required of an actor. To presume that all the makeup and travelling expenditure of an ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tian Charges, costume design charges and boarding lodging charges were disallowed by the A.O. In the nature of the profession of the assessee, we cannot say that these expenditures were not relevant and necessary for maintaining his profile. We are therefore of the opinion that the CIT (Appeals) was justified in giving a relief of ₹ 35 Lakhs considering the relevant aspects and also circumstances of the case. We do not find any need to interfere with the order of CIT (Appeals). 8. The Tribunal, taking note of the various heads under which the expenses were claimed and also considering the merits of the assessee's claim for expenditure incurred on account of travelling, wig material, makeup and other supporting professional e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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