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TMI Blog1991 (8) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... g to Rs. 21,741 as revenue expenditure in the year under consideration. The assessee submitted an expert's opinion, saying that this film had become useless in the very next year. In view of he expert's opinion it was contended on behalf of he assessee before the CIT(A) that the entire expenditure of Rs. 61,383 should be allowed in this year and next year. The ITO treated the same as capital expenditure. The CIT(A) after considering the submissions made by the assessee came to the conclusion that a film which could not run even for two years, obviously could not be considered as capitalist. He, therefore, deleted the disallowance of Rs. 21,741 made by the ITO and directed him to allow the said amount as a revenue expenditure. 2. Before u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 ITR 1 (SC). 4. In our view the CIT(A) has rightly deleted the disallowance of Rs. 21,741 made by the ITO. The expenditure incurred for preparing an advertisement film which was admittedly exhibited for making of publicity of assessee's product in the year under consideration presents revenue expenditure. The fact that he film become useless in a period of less than two years also indicates that the said advertisement film did not result in any enduring benefit to the assessee for a longer duration. The assessee claimed only 1/3rd of the said expenditure amounting to Rs. 21,741.56 as revenue expenditure in the year under consideration. In view of the principles of law explained by the Hon'ble Supreme Court in the case of Empire Jute Co. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng through the cases cited by them, we find that this issue is clearly covered against the assessee by the judgment of Hon'ble jurisdictional High Court in the case of CIT vs. Mihir Taxtiles Ltd. in which damages paid under s. 14 of the Employees Provident Fund Act, 1952 was held to be inadmissible expenditure. The question before the Hon'ble Supreme Court int he case of Mahalaxmi Sugar Mills Ltd relates to interest payable under the provisions of U.P. Sugarcane Cess Act. The judgment of Hon'ble Gujarat High Court referred to above was not even referred before the Hon'ble Supreme Court in the case Mahalaxmi Sugar Mills co. It is true that the Hon'ble and Andhra Pradesh High Court in the case of CIT vs. Hyderabad Allwyn Metal Works Ltd. (198 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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