Purchase of distribution rights of film is capital asset hence loss allowable as STCG

ACIT Vs Nadiadwala Entertainment & Technologies Ltd. (ITAT Mumbai) ITAT Mumbai held that investment made for purchase of distribution rights of the film is for the purchase of capital asset and hence loss incurred on the same allowable as ‘short term capital loss’. Facts- The assessee advanced a sum of Rs. 8.9 crores to ‘Prakash Jha Production’ on account of a feature film ‘Arakshan’. It was claimed by the assessee that the said investment was made for purchase of distribution rights of the film but the assessee could not fulfil its obligation of financing the further amount fo...