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2013 (12) TMI 598 - ITAT MUMBAIWhether expenses on abandoned film are allowable as deduction or not - Held that:- Following Alembic Chemical Works Co. Ltd. vs. CIT [1989 (3) TMI 5 - SUPREME Court] - A feature film is only a stock-in-trade of his business for a film producer - Where not released for exhibition, i.e., 'sold' directly or indirectly, the same is to be necessarily carried over as such - Where the film for some reason cannot be completed and the project is shelved it cannot be reharded as a capital asset - The value of the film declines considerably within a short period of its release - The only condition to which this would be subject is of the said suspension of work being not temporary, so that there is in fact no loss of value, of which though there is no indication in the present case - The loss ensuing thus would only be the loss for the year of its incurrence, i.e., the year in which the film project is abandoned - Decided against Revenue.
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