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I have carefully examined all the facts pertaining to the
issue and I am of the opinion that assessee is engaged in
the show business of running cinema, theatre etc.
Therefore, it needs to be seen that as to when it can
ITA NOS. 194 & 213/DEL/2011
reasonably be held that the assessee has set up his
business.
Even the road show conducted for launching of the project
were only promotional activities and are therefore pre-
operational in nature. From the details of various
agreements provided by the appellant it can reasonably be
held that the date on which the building for cinema was
occupied on rent i.e. 01.01.03 can safely be held as the cut-
off date. In fact it is in January 2003 that the appellant has
also entered into agreement with distributors & media
agencies; telephone lines were installed in January 2003 &
even trial run of the Cinema was carried out in Dec. 2002 &
fixed assets purchased.