AMARJOTHI PICTURES vs COMMISSIONER OF INCOME-TAX, MADRAS — 1971 PTD 161

Citation: 1971 PTD 161

Court: Madras High Court

Year: 1967

Decision Date: 1967-12-18

Parties: AMARJOTHI PICTURES vs COMMISSIONER OF INCOME-TAX, MADRAS

Headnotes

Case cited as 1971 PTD 161

Judgment Text

Court Name: Madras High Court Judge(s): K. Veeraswa mi, Ramaprasada Rao Title: AMARJOTHI PICTURES vs COMMISSIONER OF INCOME-TAX, MADRAS Case No.: Case No. 82 of 1964 Date of Judgment:1967-12-18 Reported As: 1971 PTD 161 Result: Question answered JUDGMENT JUDGMENT VEERASWAMI, J.-The assessee claimed as deduction under section 10(2)(xv) of the Income-tax Act, 1922, a sum of Rs. 13,376 as expenditure laid out wholly and exclusively for purposes of the business. The claim was disallowed by the Income-tax Officer, who was of the view that the sum was not expended for commercial expediency. The Appellate Assistant Commissioner, however, agreed with the assessee, being of opinion that the expenditure was a normal feature and tended to bring a better market for the picture. The Tribunal reversed that order and that is how the reference arises under section 66(2). The question referred is : "Whether, on the facts and in the circumstances of the case, the disallowance of a sum of Rs. 13,376 out of the expenses incurred by the petitioner in connection with the Silver Jubilee run of picture `Kalyana Parisu' is permissible under the provi--sions of section 10(2)(xv) of the Income-tax Act?" The matter relates to the assessm ent year 1960-61. The assessee is a partnership firm carrying on business in distribution and exhibition of films. It had taken the picture `Kalyana Parisu' for exhibition, in the city of Madras from the producers, Trinity Pictures, on a minimum guarantee of Rs.…

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