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TMI Blog2016 (8) TMI 557X X X X Extracts X X X X X X X X Extracts X X X X ..... see by : Shri R. Prasad Rao ORDER Per Rajendra, AM Challenging the order dtd. 18. 09. 2014 of the CIT(A)-3, Mumbai, the AO(Assessing Officer) has filed the present appeal. Assessee, an individual, engaged in the business of film production filed its return of income for the year under consideration on 08. 05. 2012, declaring its total income at ₹ 2. 35Crores. The AO completed the assessment u/s. 143(3)of the Act, on 26. 11. 2013, determining the total income of the assessee at ₹ 2. 75Crores. The solitary ground raised by the AO, is as to whether the cost of production of an abandoned film can be treated as a revenue expenditure. 2. During the assessment proceedings, it was found by the AO that the assessee had wri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al High Court in the case of M/s. Venus Records and Tapes P. Ltd. (Income tax appeal No. 310 of 2013 dated 28. 01. 2015), as well as the orders of the Tribunal in the cases of M/s. Warner Bros. Pictures(I)Pvt. Ltd. (ITA/4866/Mum/2014, dated 15. 01. 2016 for AY 09-10); Abdul G. Nadiadwala (ITA/2896/Mum/2011, dt. 12. 06. 2013). 5. We have heard the rival submissions and perused the material available on record. We find that, while deciding the appeal in the case of M/s. Warner Bros. Pictures (I) Pvt. Ltd (supra), the Tribunal has decided the issue in favour of the assessee, that the Tribunal had deleted the penalty levied by the AO and confirmed by the FAA. The relevant portion of the order (supra) reads as under: 3. 3. 1 We have hear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicable in the case of abandoned feature films. The same is extracted hereunder:- Circular No. 16/ 2015 F. No. 279/ Misc/ 140/ 2015 -ITJ Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes ****** New Delhi, 6th October, 2015 Subject: - Non- applicability of Rule 9A of the income Tax Rules 1962 in the case of Abandoned Feature Films- The 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 deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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