Priyanka.S (Articled Student) (168 Points)
09 May 2017
Studentsca
(CA Practice )
(3577 Points)
Replied 09 May 2017
Priyanka.S
(Articled Student)
(168 Points)
Replied 09 May 2017
Whether the Income derived from exhibition of cinema can be shown as rental income or not is the doubt?
That depends on the type of agreements between the hall owner and the distributor
For eg, Leasing agreements (the distributor leases out the hall for screening of the movie), Revenue sharing agreements, Agreement in the nature of sale of goods (the theatre owner buys the print of the film by payment of fixed price), Agreement to screen the movie for fixed period etc
Studentsca
(CA Practice )
(3577 Points)
Replied 09 May 2017
Ajit & Company , Jaipur 2017 (HC)The cinema was exclusively owned and managed by the cinema owner and the assessee was having no interference with selecting the films, exhibiting the films, issuing tickets, paying tax, maintaining statutory Compliances Whatsoever. Thus the agreement was not of letting out but was for conduct of business. Therefore, the view taken by the Tribunal is just and proper, no interference is called for. In the opinion of this court, is not rent it was the collection which was assured by the parties to the agreement.
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