Infrastructure Fee Deduction Set at 5% of Receipts, Not Gross Advertising Bills: Bombay HC

Star Time Communication (I) Pvt. Ltd Vs CIT (Bombay High Court) Bombay High Court held that as per the terms and conditions of the agreement, the assessee was required to pay 5% of the receipt of the assessee and not on 5% of the gross advertising bills. Accordingly, infrastructure fee deduction restricted to 5% of receipt. Facts- The assessee entered into an agreement dated 27th July 1992 with Prime Time Media Services Pvt. Ltd. Under 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 r...