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2012 (4) TMI 355 - AT - Income TaxAdditional Evidence - Rule 46A - right of the assessee - held that:- The assessee has explained that because the Assessing Officer has not specifically called for the evidence, therefore the assessee did not file the same before the Assessing Officer. - It is pertinent to note that the Assessing Officer has raised a specific query whereby the assessee was asked to explain such valuation and subsequent loss. - The assessee filed its reply vide letter dated 7.10.2009. Therefore, the assessee was given sufficient opportunities to explain and substantiate its claim of revaluation of closing stock. - As regard sub rule (4) of Rule 46A that is a discretionary power of the CIT(A) to direct the production of any document, or the examination of any witness for proper adjudication of the case. - the assessee cannot claim any right under sub rule (4) of Rule 46A for producing of any document which otherwise cannot be produced under sub Rule (1) of Rule 46A. Valuation of Closing Stock - deduction in respect of cost of production of feature film as per Rule 9A - held that:- once the expenditure on the production of the film is allowable as deduction as per the provisions of Rule 9A, then no deduction is permissible de-hors the provisions of Rule 9A. Allowance of cost of the feature film as business loss - abandoned project - held that:- the assessee's case is not for the claim of abandoned project or covered under Rule 9(4). Therefore, the case relied upon by the assessee are not applicable in the facts of the present case. Further, the alternative plea of the assessee is pertaining to the issue of allowing the business loss in the assessment year other than the year under consideration, which cannot be adjudicated in the proceedings of this year. Business loss as per Rule 9A(4) - held that:- The deduction shall be allowed in accordance with the provisions of sub rule (2) to sub rule (4) of Rule 9A of I T Rules 1962. Therefore, sub rule (2) to (4) expresses various circumstances and procedures to allow the deduction. Whereas sub rule (5) of Rule 9A stipulates the conditions which are required to be fulfilled for such deduction is allowed. - when the assessee has neither himself exhibits feature film on commercial basis nor sold the rights of exhibits of the feature film nor transfer the rights of exhibits of feature film, then the claim of deduction is hit by sub rule (5) of Rule 9A of the I T Rules and cannot be allowed. Valuation of opening stock of the next year - held that:- in view of the decision of the Hon'ble jurisdictional High Court in the case of CIT v. Mahalaxmi Glass (2009 -TMI - 35481 - BOMBAY HIGH COURT), opening stock of the next year should be valid at the figure which has been taken by the Assessing Officer for the closing stock of this year.
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