Taxpublishers.in - InterestingDecision/IDDTF_219.htm - Tax Publishers Your Tax Solution Hub

Share via Whatsapp 156 Views


The Tax Publishers Expense allowabiliy of Video shooting expenses for tour/travel promotion Allowability of issue expenses of non-covertible debentures offset against share premium *Facts:* Assessee was under insolvency resolution and revenue's grievance was two fold - a) DRP allowed video shooting expenses which was treated as intangible assets in the books of the assessee but claimed fully for income tax purposes. b) Restricting the disallowance of non-convertible debenture issue expenses to the extent of capital expenditure which was set off against share premium but claimed in full by the assessee for tax purposes. Held against the revenue - Video shooting expenses for business promotion was an allowable expenditure. Order of DRP requires no intervention in disallowing part of the issue expenses of non-convertible debentures to the extent of capital expenditure alone. Rest of it is allowable as revenue expenditure - revenue's plea for full disallowance was not accepted. *Applied:* Video Shooting expenses allowability - CIT v. Geoffrey Manners & Co. Ltd. (2009) 180 Taxman 87 (Bombay) : 2009 TaxPub(DT) 1427 (Bom-HC) dated 09-02-2009 *Case:* ACIT v. Alok Kumar Agrawal 2023 TaxPub(DT) 4625 (Mum-Trib)

The Tax Publishers

Expense allowabiliy of Video shooting expenses for tour/travel promotion

Allowability of issue expenses of non-covertible debentures offset against share premium

Facts:

Assessee was under insolvency resolution and revenue's grievance was two fold -

a) DRP allowed video shooting expenses which was treated as intangible assets in the books of the assessee but claimed fully for income tax purposes.

b) Restricting the disallowance of non-convertible debenture issue expenses to the extent of capital expenditure which was set off against share premium but claimed in full by the assessee for tax purposes.

Held against the revenue - Video shooting expenses for business promotion was an allowable expenditure.

Order of DRP requires no intervention in disallowing part of the issue expenses of non-convertible debentures to the extent of capital expenditure alone. Rest of it is allowable as revenue expenditure - revenue's plea for full disallowance was not accepted.

Applied:

Video Shooting expenses allowability - CIT v. Geoffrey Manners & Co. Ltd. (2009) 180 Taxman 87 (Bombay) : 2009 TaxPub(DT) 1427 (Bom-HC) dated 09-02-2009

Case: ACIT v. Alok Kumar Agrawal 2023 TaxPub(DT) 4625 (Mum-Trib)