Deduction Calculation Basis: HC Clarifies 5% Fee Applies to Actual Receipts, Not Gross Bills

Star Time Communication (I) Pvt. Ltd. Vs CIT (Bombay High Court) 5% of Bills or 5% of Receipts? Bombay HC Picks Reality Over Hype- No Receipts, No Percentage! HC Rejects 5% on Gross Bills Claim The assessee-company, incorporated in April 1992, entered into an agreement dated 27.07.1992 with Prime Time Media Services Pvt. Ltd. Clause-3 of this agreement required the assessee to pay 5% of its total receipts from advertising to Prime Time. For AY 1993-94, the assessee filed its return declaring income of ₹7,57,746 & disclosed advertising income of ₹63,43,480 in its Profit & Loss accou...