Post-production expenses of feature films are not governed by either under Rule\u00a0 9A or 9B of the Act. The\u00a0 assessee having acted as a producer and distributor of a feature film, post-production expenses incurred by him are deductible under s. 37(1) of the Act. Tribunal also held that\u00a0 since there was no tangible material with the AO to form reasonable belief of escapement of income, except the audit objection on application of Rule\u00a0 9A and 9B, cannot be said that there was failure on the part of the assessee to disclose fully and truly all facts necessary for completion of assessments, and therefore, the reassessment proceedings were not valid. Tribunal also held that\u00a0 In the absence of necessary details on record to apply a particular ate for estimation of income from resale of set materials of feature films produced by the assessee, the same is estimated at 5 per cent of total cost incurred on such set materials.\u00a0 (AY. 2004-05, 2006-07)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 37(1) : Business expenditure-Post-production expenses of feature film-Producer and distributor-Allowable as business expenditure-Rule 9A or Rule 9B is not applicable. Reassessment on change of opinion is bad in law-Resale of set material-Estimated at 5 per cent of total cost incurred on such set materials. [S. 143(3), 147, 148 Rule, 9A, 9B] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-35845","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-9k9","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/35845","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=35845"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/35845\/revisions"}],"predecessor-version":[{"id":35846,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/35845\/revisions\/35846"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=35845"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=35845"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=35845"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}