9911796707
TMI Blog2015 (10) TMI 1397X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. First Appellate Authority, Mumbai. The Revenue has raised the following grounds: i. The ld. Commissioner of Income tax (Appeals) erred in allowing the cost of Rs. 3,38,58,888/- towards abandoned film by relying on the ratio of the Bombay High Court in the case of Sh. Rajesh Khanna, thereby ignoring the fact that the department has filed a review petition against the said decision. ii. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on record. Before coming to any conclusion, we are reproducing hereunder the relevant portion from the impugned order:- "I have considered the facts and find that the appellant is film producer, the film is to be treated as stock-in-trade, and hence cost of abandoned film is written off as revenue expenditure. The Assessing Officer has proposed disallowance on the ground that expenditure is capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of cost of abandoned film were deleted. Further the decision in the case of Rajesh Khanna is also affirmed by Bombay High Court in the case of CIT vs Rajesh Khanna (ITA No.3875 of 2010) decided on 19/09/2011. The said decision has been followed in the case of Venus Records and Tapes Pvt. Ltd. vs ACIT (ITA NO.666/Mum/2010) dated 07/09/2012. In the light of above facts, the issue squarely covered in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fit & loss account. The ld. Assessing Officer opined that the expenditure claimed to be nature in stock in trade is not a capital expenditure. The assessee place reliance upon the decision from Hon'ble Bombay High Court in the case of Rajesh Khanna (ITA No.3875/2010). The stand of the assessee right from assessment stage is that the film was treated as stock in trade, hence the cost of abandon ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
