TaxTMI 
TaxTMI 
2017 (2) TMI 335
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....f the Income Tax Act, 1961; in short "the Act" in the former assessment year and u/s.143(3) in the latter assessment year. 2. The Revenue's sole substantive ground is identical in both the assessment years pleads that the CIT(A) has erred in deleting addition of Rs. 30,92,801/- out of Rs. 31,73,928/- pertaining to direct and indirect expenses in former assessment year and from Rs. 45,88,255/- to Rs. 45,16,589/- in latter assessment year; as made by the Assessing Officer. 3. We come to relevant facts now. This assessee derives income from playing cricket sport, sponsorship and marketing. He claimed various expenses under the head business development, office, salary, office rent, other interests, petrol expenses, repair/maintenance, te....
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....partly reverses Assessing Officer's action in both assessment years as indicated in Revenue's pleadings as under: "3. Decision:- Submissions made by the appellant have been considered with reference to the assessment order passed. Only effective ground of appeal is against the addition of Rs. 31,73,9287- made by the AO by disallowing various expenditure claimed by the appellant. The AO stated as under in the assessment order:- "The reply of assessee considered carefully and found the same is not acceptable. The assessee is a cricketer and represent Indian cricket team during the year consideration. He was deriving income from BCCI Match fee, IPL Match Fee, Retainership Fee. etc. there income was generated from playing of cric....
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....d to in incur some expenditure. Playing cricket is the profession of the appellant and TDS was also deducted considering the receipts of the appellant as professional receipts. The findings of the AO that expenditure is not allowable, is not logical for the simple reason that any expenditure incurred for earning that income, under any head of income is an allowable expenditure as per the provision of the Act. 3. The appellant claimed the following expenses in the P & L Account as on 31.03.2009. Particulars l-Apr-2008 to 31-Mar-2009 Direct Expenses 6,15,320.00 1 CRICKET EXPENSES 2,60,200.00 TRAINING & FITNESS EXP 3,55,120.00 Gross Profit c/o 1,86,86,903.30 ....
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....eturned for the year. However, about the indirect expenditure, out of the following expenditures, personal elements cannot be ruled out: (i) Petrol Expenses Rs.2,80,106 (ii) Repair & Maint. Exp Rs.17,450 (iii) Travelling Exp. Rs.5,13,717 Total Rs.8,11,273 As mentioned above, out of the total expenditure of Rs. 8,11,273/-, I consider 10% of the same i.e. Rs. 81,127/- as incurred for personal purposes and additions to that extent are confirmed. Remaining additions of Rs. 30,92,8017- (31,73,928 - 81,127) are deleted. This ground of appeal is Partly allowed. 5. We have heard both the parties strongly reiterating their respective stands. There can hardly be any dispute that the assessee ....