TMI Blog2013 (6) TMI 673X X X X Extracts X X X X X X X X Extracts X X X X ..... irected against the order passed by the learned Commissioner of Income-tax (Appeals)-3, Mumbai dated January 13, 2011 for the assessment year 2006-07. 2. The grounds of appeal read as under : 1. On the facts and in the circumstances of the case and in law, the learned Commissioner of Income-tax (Appeals)-3, Mumbai erred in deleting addition of ₹ 60 lakhs without appreciating the fact that the expenditure incurred on an abandoned film is in the nature of a capital loss and not a loss which is revenue in nature as an incomplete film is in the nature of capital work in progress. 2. The appellant prays that the order of the Commissioner of Income-tax (Appeals) on the above grounds to be set aside and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er considering all aspects and market trends concluded that project had no viability. Instead of increasing further loss, they decided to shelve the project and write off the amounts advanced/incurred. As on the date of scrap, i.e., February 17, 2006 the producer had incurred cost of ₹ 1.06 crores out of which the appellant's share was ₹ 60 lakhs. 3. On these facts, the learned Commissioner of Income-tax (Appeals) relying upon several decisions, which, inter alia, includes decisions rendered by the Mumbai Income-tax Appellate Tribunal has held that the expenditure incurred by the assessee in respect of abandoned film is allowable. The Revenue is aggrieved, hence, filed aforementioned appeal. 4. At the outset it was su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we may reproduce the relevant observation of the hon'ble Bombay High Court from the decision in the case of CIT v. Mukta Arts P. Ltd. 1. Heard the learned counsel appearing for the appellant and learned counsel appearing for the respondent. 2. We have perused the order of the Income-tax Appellate Tribunal dated May 2, 2001 and also the question of law sought to be raised in the above appeal which reads as under : '(a) Whether, on the facts and in the circumstances of the case and in law, the hon'ble Income-tax Appellate Tribunal was justified in holding that the cost of production of the abandoned film DEVAA is trading loss ? (b) Whether, on the facts and in the circumstances of the case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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