The Commissioner Of Income Tax-11 v. M/S. Milestone Entertainment Pvt. Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1642 OF 2010 The Commissioner of Income Tax-11...Appellant. Vs. M/s. Milestone Entertainment Pvt. Ltd.,..Respondent. .... Mr. Vimal Gupta, for the Appellant. Ms. Aasifa Khan a/w. Ashok J. Patil, for the Respondent. .... CORAM : J. P. DEVADHAR & A.R. JOSHI, JJ. DATED : 21st NOVEMBER, 2011. P.C. 1.The question of law raised by the Revenue reads thus : “Whether on the facts and in the circumstances of the case the Hon'ble ITAT was right in law in deleting the addition of Rs.13,22,000/- considering the same as Revenue Expenditure even though the assessee has not shown the value of the products to the closing stock.” 2.The assessment year involved in this case is A.Y. 1998-99. 3.In the assessment year in question the assessee had incurred total expenditure of Rs.13,75,750/- in respect of the new Albums/other Albums. Out of which Rs.13,22,000/- is related to the expenditure of new Albums. The question is whether the said expenditure of Rs.13,22,000/- is allowable as a revenue expenditure. 4.The ITAT has recorded a finding of fact in para 8.1 of its order that the assessee has a consistent accounting practice which comes from year to year wherein the production cost and studio cost are booked as revenue expenditure and are allowed accordingly. 5.In view of the fact that the said expenditure has been consistently allowed in the past, we see no reason to differ with the view taken by the ITAT while allowing the Appeal. Accordingly, we see no reason to entertain the Appeal. Accordingly, the Appeal is dismissed. (A. R. JOSHI, J.) (J. P. DEVADHAR,J.)