2025 (12) TMI 1111

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....come Tax Appellate Tribunal (in short 'ITAT'/'Tribunal') dated 12.09.2008 for the block period 01.04.1996 to 27.06.2002 passed in terms of the provisions of the Income Tax Act, 1961 (in short 'Act'). 2. Five questions were raised by the assessee originally and three were rejected even at the time of admission. Two were admitted for consideration and read as follows: 'c. Whether on the facts and circumstances of the case, the Tribunal is right in law in holding that the assess has not maintained proper books of accounts and not complied with the provisions of section 9(b) ? d. Whether on the facts and circumstances of the case, the Tribunal is right in law in holding that the loss claimed by the a....

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....y, who was of the view that the appellant was entitled to a set-off of the loss as against the theatre collections for that year, based on the evidences produced before the Commissioner of Income Tax (Appeals) (in short 'CIT(A)'). Essentially, the CIT(A) has gone on the basis of the bank statements, concluding that such statements would suffice even in the absence of the books of accounts. The CIT(A) had arrived at the tabulation of the net loss in the following manner: Particulars Amount Amount By theatre collections 1,28,730.00   to picture outright and lease paid   7,25,000.00 to publicity expenses   14,275.00 To representative salaries   6,500.00 To printing and station....

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....goric to the effect that the computation of income in order to arrive at the income earned by a film distribution company, must be based on its books of accounts. 10. For ready reference, we extract below the provisions of Rule 9B, to the extent to which it is relevant for this matter: 'Deduction in respect of expenditure on acquisition of distribution rights of feature films. 9B. (1) In computing the profits and gains of the business of distribution of feature films carried on by a person (the person carrying on such business hereafter in this rule referred to as film distributor), the deduction in respect of the cost of acquisition of a feature film shall be allowed in accordance with sub-rule (2) to sub-rule (4). ....