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Documents citing Commissioner Of Income-Tax vs De Luxe Film Distributors Ltd. on 22 February, 1978

Chloride India Ltd. vs Commissioner Of Income-Tax on 16 April, 1980

13. Reliance was also placed on a decision of this court in the case of CIT v. De Luxe Film Distributors Ltd. [1978] 114 ITR 434, where the assessee-company was a producer and distributor of cinematograph films. It entered into an agreement with one A for financing the production, being the distributor of a film. Disputes arose between A and the assessee-company on the question as to who was the producer of the film. An arbitration award declared A and the company to be joint producers. There were other disputes which were settled by the terms of a settlement. Under its terms A executed a deed of release whereby he gave up all his claims as producer including 40% of the share of profits and other benefits in consideration of an amount of Rs. 20,101 paid to him by the company. On the question, whether this amount represented revenue expenditure on the part of the company, it was held that the decision on the question whether an expenditure was revenue expenditure or capital expenditure depended on the facts of each case. In this case, the sum of Rs. 20,101 was paid to clear the title in the carrying on of the business of the assessee which was clouded by the claims of A. It was emphasised that the assessee was not acquiring any capital asset by the expenditure of the sum nor was it perfecting its title which was already clarified by the award. The sum was spent in the background of business expediency and was, therefore, allowable as revenue expenditure.
Calcutta High Court Cites 20 - Cited by 53 - S Mukharji - Full Document
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