2008 (11) TMI 354

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....as released on commercial basis on March 23, 1990. It is an admitted position that the assessee maintained the books of account for the period ending on March 31, 1989 and March 31, 1990. However, the assessee has not maintained the books of account for the year in which the film was released. According to him, non-maintenance of account had occasioned on account of the fact that he received a single sum of Rs.10,000 against the total production cost of R 11,50,000. The assessee claimed deduction in respect of expenditure on production of the feature film as provided under rule 9A of the Income-tax Rules, 1962 (hereinafter referred to as "the Rules"). 2. The Assessing Officer did not grant deduction on his finding that the assessee has n....

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.... production of a feature film, but in the present case the assessee received only Rs.10,000, which was entered in the pass book maintained by the bank, it is fit to be treated as books account. He contends that rule 9A of the Rules being a subordinate legislation, a liberal construction is called for. He submits that it would have served no purpose, had the entry made in the pass book is entered in the books of account. 6. Mr. Rishi Raj Sinha, appearing on behalf of the Revenue, however, con tends that the pass book maintained by the bank cannot be said to be the books of account maintained by the assessee and the condition precedent for claiming deduction under rule 9A of the Rules having not been satisfied, the Tribunal did not err in ....

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....It provides that deduction under this rule shall not  be allowed unless the amount realised by exhibiting the film is credited  in the books of account maintained by the film producer. A pass book is not a books of account maintained by the film producer. In the face of the language of rule 9A(5) of the Rules, the deduction shall only be allowed when the film producer has credited in the books of account maintained by him the amount realised by exhibiting the film. When the rule has provided for allowing deduction on fulfilling of certain conditions, i.e., maintenance of books of account by the film producer, we are of the opinion that the number of credits made in the pass book shall be no consequence. Further, the books of accou....