2006 (4) TMI 73

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.... R. BALASUBRAMANIAN J.- 1. The appeal stands admitted on the following substantial question of law: "Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the assessment order was neither erroneous nor prejudicial to the interests of the Revenue and, therefore, the Commissioner could not have revised the same under section 263 ?" 2. Exercising power, un....

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....f the assessee does not exploit the said film during that year or does not sell the rights of exhibition of the film. In other words, if there is no exploitation by the assessee and if he does not sell the rights of exhibition of the film, then, no deduction shall be allowed in respect of the cost of acquisition of the film, in computing the profits and gains of the previous year, in which year, t....

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.... and prejudicial to the Revenue. 4. In our considered opinion, the Commissioner of Income-tax had arrived at such a conclusion only on the basis that the vendor of the film is the sister concern of the assessee. This cannot be a reason at all, in our considered opinion. Merely because the sale is by a concern to another concern, which is its sister concern, it would not necessarily follow that ....