(1)In computing the profits and gains of the business of production of feature films carried on by a person (the person carrying on such business hereafter in this rule referred to as film producer), the deduction in respect of the cost of production of a feature film certified for release by the Board of Film Censors in a previous year shall be allowed in accordance with the provisions of sub-rule (2) to sub-rule (4).Explanation. - In this rule,-(i)"Board of Film Censors" means the Board of Film Censors constituted under the Cinematograph Act, 1952 (37 of 1952);(ii)"cost of production", in relation to a feature film, means the expenditure incurred on the production of the film, not being-(a)the expenditure incurred for the preparation of the positive prints of the film; and(b)the expenditure incurred in connection with the advertisement of the film after it is certified for release by the Board of Film Censors:Provided that the cost of production of a feature film, shall be reduced by the subsidy received by the film producer under any scheme framed by the Government, where such amount of subsidy has not been included in computing the total income of the assessee for any assessment year.
