2015 (10) TMI 1397

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... by the impugned order dated 28/03/2013 of the ld. First Appellate Authority, Mumbai. The Revenue has raised the following grounds: i. The ld. Commissioner of Income tax (Appeals) erred in allowing the cost of Rs. 3,38,58,888/- towards abandoned film by relying on the ratio of the Bombay High Court in the case of Sh. Rajesh Khanna, thereby ignoring the fact that the department has filed a revie....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rth by the ld. DR and perused the material available on record. Before coming to any conclusion, we are reproducing hereunder the relevant portion from the impugned order:- "I have considered the facts and find that the appellant is film producer, the film is to be treated as stock-in-trade, and hence cost of abandoned film is written off as revenue expenditure. The Assessing Officer has propos....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....anna and above decision, disallowance made on account of cost of abandoned film were deleted. Further the decision in the case of Rajesh Khanna is also affirmed by Bombay High Court in the case of CIT vs Rajesh Khanna (ITA No.3875 of 2010) decided on 19/09/2011. The said decision has been followed in the case of Venus Records and Tapes Pvt. Ltd. vs ACIT (ITA NO.666/Mum/2010) dated 07/09/2012. In t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... same as work in progress and routed the same in its profit & loss account. The ld. Assessing Officer opined that the expenditure claimed to be nature in stock in trade is not a capital expenditure. The assessee place reliance upon the decision from Hon'ble Bombay High Court in the case of Rajesh Khanna (ITA No.3875/2010). The stand of the assessee right from assessment stage is that the film ....