TAX RELIEF FOR CINE FILM PRODUCERS

Supreme Court has set aside the ruling of the Madras High Court which had denied income tax benefits in terms of Section 32AB, Section 80HH and Section 80I of the Income Tax Act to cine film
manufacturers. In this case, India Cine Agencies vs. Commissioner of Income Tax, the court dealt with the process of conversion of jumbo rolls of photographic films into small rolls of desired sizes. The cine traders argued that they were entitled to the benefits as they were manufacturing or producing a new product. The high court had denied the benefits and therefore the traders appealed
to the Supreme Court. It reversed the high court ruling.