2016 (1) TMI 1122

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....dian films and business activities of trading in capacitors and investment in shares and securities, filed its return of income for Asst. Year 2009-10 on 29/09/2009 declaring total loss of Rs. 32,55,43,367/-. The return was processed u/s 143(1) of the Income Tax Act, 1961 (in short 'the Act') and the case was subsequently taken up for scrutiny. The assessment was completed u/s 143(3) of the Act vide order dt. 27/12/2011, determining the loss at Rs. 30,72,93,447/-, in view of inter alia , disallowance of Rs. 1,82,49,920/-, on account write off of expenses on account of purchase of film script, holding the same to be capital expenditure. 2.2 Aggrieved by the order of assessment for Asst. year 2009-10 dt. 27/12/2011, the assessee preferred an ....

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....ase of film script of an abandoned film written off is allowable as a revenue expenditure, is covered in favour of the assessee by the order of the Hon'ble Bombay High Court in the case of M/s. Venus Records and Tapes (P) Ltd, in ITA No. 310 of 2013 dt. 28/01/2015 and CBDT Circular No. 16/2015 dt. 06/10/2015 accepting the said decision. 3.3.1 We have heard the rival contention and have perused and carefully considered the material on record, including the judicial decisions, etc. cited. The issue for consideration and adjudication before us is whether, in the facts and circumstances of the case and in the light of judicial pronouncements in this regard, the write off of expenditure of Rs. 1,89,49,920/- incurred on account of advance for ....

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....he deduction in respect of the cost of production of a feature film certified for release by the Board of Film Censors in a previous year is provided in Rule 9A of Income Tax Rules, 1962. 2. In the case of abandoned films, however, since certificate of Board of Film Censors is not received, in some cases no deduction was allowed by applying Rule 9A of the Rules or by treating the expenditure as capital expenditure. 3. The matter has been examined in light of judicial decisions on this subject. The order of the Hon. Bombay High Court dated 28. 1.15 in ITA 310 of 2013 in the case of Venus Records and Tapes Pvt. Ltd. on this issue has been accepted and the aforesaid disputed issue has not been further contested.   Consequently....