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2012 (6) TMI 322 - AT - Income TaxInterest payable on the picture under production – whether it will be allowable business expenditure u/s 36(1)(iii) and not forming a part of cost of production under Rule 9A – Held that:- The interest attributable to the borrowings utilized in the production of film will be added to the cost of production for being allowed under Rule 9A and the interest on borrowings used for other purposes will be allowed as a deduction for the current year u/s 36(1)(iii) – no point in ignoring the applicability of Rule 9 on interest on borrowings used for the production of the film when other normal expenses otherwise allowable under other sections like 36, 37 etc are capitalized under Rule 9A - determination of the extent of actual amount of borrowing used for the purpose of production of film the matter is remitted back to the file of the AO to determine the same – in favour of revenue for statistical purpose. Capital gains - Transfer of the property on the basis of joint development agreement - purview of section 2(47) r.w.s. 53A of the Transfer of Properties Act – assessee contention that the assessee has received the right to receive consideration on a later date – Held that:- Mere accrual of the consideration received in the subsequent years does not defer the taxability of the capital gains – as property was handed over in part performance under S.53A of the Transfer of Property Act, and it could not be said that the transaction was without consideration - date on which possession was handed over to the developer is relevant for determination of the year in which the capital gains are assessable to tax - the possession of the land having been handed over to the developer in the assessment year under consideration, the transfer takes place in the assessment year under consideration only, and consequently the assessee is liable to be assessed to tax in relation to the capital gains in the year under consideration itself – against assessee.
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