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2016 (7) TMI 390 - AT - Income TaxDisallowance of loss - quantum of loss - assessee is engaged in the business of production of films - Held that:- We are of the view that the reasoning given by the tax authorities to restrict the loss to ₹ 19.00 lakhs cannot be considered to be correct one. Since the assessee has taken a commercial decision in the normal course of carrying on its business and since the assessing officer has not brought on record any material to show that identical transaction with identical set of facts could have fetched more price at the relevant point of time, we are of the view that there is no reason to disbelieve the consideration disclosed by the assessee. Further, we have also noticed that the rights and liabilities available with the assessee and M/s AFL/RBEL cannot be considered to be the same. Accordingly, we are of the view that the Ld CIT(A) was not justified in confirming the disallowance made by the AO. Accordingly we set aside the order of Ld CIT(A) passed on this issue and direct the AO to delete the impugned disallowance of ₹ 45.83 lakhs. - Decided in favour of assessee.
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