The Commissioner of Income-tax, Chennai v. Prakash Raj
[Citation -2014-LL-1203-19]
| Citation | 2014-LL-1203-19 |
|---|---|
| Appellant Name | The Commissioner of Income-tax, Chennai |
| Respondent Name | Prakash Raj |
| Court | HIGH COURT OF MADRAS |
| Relevant Act | Income-tax |
| Date of Order | 03/12/2014 |
| Assessment Year | 2001-02 |
| Judgment | View Judgment |
| Keyword Tags | censor certificate |
| Bot Summary: | 2841/Mds/2004 for the assessment year 2001-2002 and the same was admitted on the following question of law: Whether in the facts and circumstances of the case, the Tribunal was right in holding that Sub-rule of Rule 9A of the Income Tax Rules would apply to the expenditure of an abandoned film, when Rule 9A of the Income Tax Rules applies only to films which have been certified for release by the Board of Film Censors 2. In a decision reported in 2003 261 ITR 271 Commissioner of Income-Tax vs S.M.Sagar the Bombay High Court has held that the deduction under Rule 9A of the Income Tax Rules, 1962 is allowable only if the movie is exhibited or sold. If the movie is not sold or exhibited, the producer is not entitled to claim deduction. The producer would not be entitled to deduction under Rule 9A, unless he had credited the sale proceeds in the Profit and Loss accounts. Needless to say that before exhibiting the film, the censor certificate has to be obtained as contemplated under Rule 9A of the Act. In the absence of the same, as rightly found by the assessing officer, the application of Rule 9A also does not arise in this case. The assessee is not entitled to claim deduction under Rule 9A of the Income Tax Rules. |