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2018 (4) TMI 1554 - MADRAS HIGH COURTWrite off of expenditure incurred in respect of a teleserial as abandoned - allowable business expenditure - nature of expenditure - whether the cost of production of a abandoned teleserial/feature film shall be treated as Revenue expenditure or capital expenditure? - Held that:- The issue has to be decided as per the Circular issued by the Central Board of Direct Taxes in Circular No.16/2015 dated 06.10.2015, wherein it is stated that the cost of production of an abandoned feature film is to be treated as revenue expenditure and allowed as per the provisions of Section 37 of the Income Tax Act. This circular was taken note of by the Division Bench of this Court in Tiruvengadam Investments Pvt. Ltd., Vs. Assistant Commissioner of Income Tax[2016 (1) TMI 1369 - MADRAS HIGH COURT]. Though the circular pertains to a feature film, we find that there cannot be any distinction between tele-serial and feature film as the circular deals with the aspect regarding to the cost of production of a film. - Decided against revenue
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