Advertisement expense post Flilm certification by Censor Board allowable

Advertisement expenditure incurred after certification by Board of Film Censors cannot be included as part of cost of production, hence, provisions of rule 9A, will not apply. It was held, the expenditure incurred in regular course of business has to be allowed under section 37. Brief facts are, on verifying the details submitted by the assessee, the Assessing Officer found that assessee has debited an amount of Rs. 2,62,77,421, on account of advertisement and publicity expenses for the movie “Billu Barber”. Referring to rule 9A of the Income Tax rules, 1962, the Assessing Officer observed...