2011 (8) TMI 1376 - AT - Income Tax

Tribunal Orders Reassessment on TV Software Deductions, Upholds Expense Disallowance for Personal Use Concerns.

Anil Laul Versus ITO, Ward 38 (1), New Delhi.

The Tribunal partially allowed the appeal, directing a reassessment of the deduction under section 80HHF for television software, emphasizing the need for ... - Issues involved:1. Denial of relief u/s 80HHF for television software under assessment year 2000-01.2. Disallowance of expenses for postage, telephone, electricity, power running, and maintenance.Issue 1: Denial of relief u/s 80HHF for television softwareThe appellant contested the denial of deduction u/s 80HHF by the Ld. Commissioner of Income Tax (Appeals) due to the classification of television software as films and the absence of certification from the Board of Film Certification. The appellant argued that the software was not for public exhibition but for educational purposes, and requested a remittance to the Assessing Officer for further consideration. The Tribunal agreed with the appellant, remitting the issue for fresh assessment, emphasizing the need for the appellant to be given a fair hearing.Issue 2: Disallowance of expenses for personal useThe Assessing Officer disallowed specific expenses, citing the possibility of personal usage. The appellant acknowledged the potential for personal use but argued that the disallowance was excessive. The Ld. Commissioner of Income Tax (Appeals) upheld the disallowance, noting the acceptance of personal use by the appellant. The Tribunal found no fault with this decision, as both parties acknowledged the likelihood of personal usage, leading to the affirmation of the disallowance.In conclusion, the Tribunal partially allowed the appeal for statistical purposes, directing a reassessment of the deduction u/s 80HHF and upholding the disallowance of expenses for personal use.