STARTIME COMMUNICATEION PVT. LTD. vs COMM. OF INCOME TAX, CITY-VI, MUM.

389.03-itxa.docx IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.389 OF 2003 BASAVRAJ M/s. Star Time Communication (I) Pvt. Ltd. ….. Appellant GURAPPA PATIL 1. This appeal under Section 260A of the Income Tax Act, 1961 (1961 Act), has been filed by the assessee. The subject matter of the appeal pertains to Assessment Year 1993-94. The appeal was admitted on the following substantial question of law: Whether on the facts and circumstances of the case and in law the Income Tax Appellate Tribunal was right in coming to the conclusion that the appellant was entitled to only 5% of the receipts of the appellant and not 5% of the gross advertising bills raised? 2. Facts leading to filing of this appeal, briefly stated, are that the assessee is a company incorporated on 29 th April 1992. The assessee entered into an agreement dated 27 th July 1992 (said agreement) with Prime Time Media Services Pvt. Ltd. Under Basavraj Page|1 389.03-itxa.docx clause-3 of the said agreement, the assessee was required to pay Prime Time Media Services Pvt. 5% of the total receipts from advertising. The assessee filed return of income for the Assessment Year