A film producer entered into an agreement with the director. The director began sourcing the manpower and materials to make the film on the basis of the budget as discussed with the film producer. Due to lack of control of the director on the budget estimates, the producer terminated the contract and discontinued the whole film production. Already some money was spent. There will be no income from this film production because it never took off. The money spent cannot be recovered. This will be a business loss. Can the producer claim the expenses incurred in the ITR-4 and show as business loss for the year?
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