2010 (9) TMI 1104

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 2. The appellant prays that the order o f CIT(A) on the above grounds be set aside and that of the AO restored" 3. Only issue arises in this appeal of the revenue whether in the facts and circumstances of the case, the CIT(A) is justified in directing the AO to allow the claim of written off the expenditure incurred for abandoned film . 4. The assessee debited a sum of Rs`.35,90,373/- being expenses incurred on the cost of the production of the project which was abandoned by the aseseee and there was no chance of recovery of the expenditure of the said film. The said expenditures were written off in the year and claimed as expenditure. The AO did not accept the claim of the aseseee and added the said sum of Rs`.35,90,373/- in the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....at the department had not accepted the order of ITAT and an appeal had been filed against that order of ITAT u/s 260A of the Act. The CIT(A) followed the orders of the ITAT and deleted the disallowance by observing as under(from the order of CIT(A) for AY 2006-07):-  "3. During appeal hearing, the appellant filed copy of the decision in Rajesh Khanna case being ITA No. 4804/Bom/2000, Asst. Yr. 2002-03, dated 17.01.2003. The jurisdictional Tribunal subsequently in the case of M/s J. Radjical Entertainment (I) P. Ltd. (ITA No. 4550/M/2004, Asst. Yr. 1998-99, dated 31.01.07, followed the decision of the Rajesh Khanna case as above. The appellant submitted copy of the said decision of M/s J. Radical Entertainment (I) Pvt. Ltd. The....