TMI Blog2022 (1) TMI 533X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of 50% of expenses claimed to have been incurred on cost of production of the film - appeal of the assessee is dismissed. - ITA No. 6979/Del/2019 - - - Dated:- 6-1-2022 - Kul Bharat, Member (J) Appellant by : None Respondent by : Shri Om Prakash, Sr. DR ORDER Per Kul Bharat, JM This appeal by the assessee is directed against the order of the Ld. CIT(A)-13, New Delhi dated 14th June, 2019, pertaining to the Assessment Year 2012-13. The assessee has raised following grounds of appeal:- 1. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in passing the impugned order and that too without granting adequate opportunity of hearing. 2. That on the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment. The assessment u/s. 143(3) of the Income Tax Act, 1961 (in short the Act .) was framed vide order dated 13/2/2015. The Assessing Officer while framing the assessment disallowed the expenditure of ₹ 5,41,61,256/- claimed on account of cost production of feature films. Further, the Assessing Officer also disallowed expenditure of ₹ 1,80,000/-. Thus, computed taxable income at ₹ 37,784/- against the declared loss of ₹ 5,41,61,256/-. 4. Aggrieved against this, the assessee preferred appeal before the Ld. CIT(A) The Ld. CIT(A) thereby partly allowed the appeal of the assessee. 5. The Ld. CIT(A) out of the disallowance of ₹ 5,41,61,256/- sustained the disallowance to the extent of ₹ 2,70,83,6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant himself. Rather he made his claim before the Hon'ble Bombay High Court which however held that the first right on revenue would lie with Eagle Films and if the film made profit, the appellant would be paid for the expenses incurred in making the film. It is another matter that the film was a flop and a gross collection was not enough to meet out the expenses/cost of production of the film incurred even by M/s. Eagle Films (P) Ltd. 4.10. As regards, the claim of expenses incurred to the tune of ₹ 5,41,67,256/-. In the P L a/c, the AO disallowed the same on the ground that the assessee did not fulfill the condition of rule 9A of the Income Tax Rules, 1962 and that he failed to furnish any information as to why the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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