INCOME TAX RULES, 1962

Rule 9A(3)(c)

Feature films production business - Availability of benefit of rule 9A(3)(c) - Receipt by way of sale of audio and TV rights of film -

Question arose for consideration was whether in case of assesee engaged in production of feature films. Receipt by way of sale of audio rights and TV rights fell under the category of 'receipts from exhibition of films' prescribed under rule 9A. Held: Both audio and video form integral part of a feature film. In fact, in the Indian film scenario, a feature film without audio is rarest of rare feature many a times, many films turned out to be successful due to songs. Public at large could visualise the film scenes on hearing songs. Hence, it was made possible to assign audio rights of films/songs separately. The cost of production of feature film includes expenditure on audio recording and accordingly, sale of audio rights should form part of amount realised on exhibition of films on commercial basis and amount realised on sale of audio rights and TV rights would fall under the category of 'exhibition of film' on a commercial basis eligible for benefit of rule 9A(3)(c).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15

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