Dismissing the appeal of the revenue the Court held that ;write off of expenditure incurred on abandoned Tele serial is held to be revenue expenditure. CBDT Circular No 16 of 2015 dt.6-10-2015 is applied. Though the circular pertained to a feature film, there could not be any distinction between tele serial and feature film as the circular dealt with the aspect in respect to the cost of production of a film. ( AY.2002-03)
CIT v. Prasad Productions. (2018) 407 ITR 541 (Mad) (HC)
S.37(1):Business expenditure — Capital or revenue – No distinction between feature films and TV Serials – Write off of expenditure incurred on abandoned Tele serial is held to be revenue expenditure- CBDT Circular No 16 of 2015 dt.6-10-2015 is applied.[R.9A].