Per Shri S.P. Kapur, Judicial Member - The appeal is by the revenue and following specific contentions have been raised before us :

"On the facts and in the circumstances of the case, the learned Appellate Assistant Commissioner is not justified in holding that the provisions of rules 9A and 9B of the Income-tax Rules, 1962, are not applicable in this case and further directing the Income-tax Officer that the claim for amortization expenses of the assessee should be allowed as per CBDT Circular No. 154 dated 5-12-1975 which stands superseded by the introduction of rule 911 of the Income-tax Rules, 1962."

2. The respondent assessee is a resident-registered firm. The assessment year involved is 1977-78. The assessee-firm came into being on 19-12-1975 and accounting period observed for the assessment year under appeal ended on 31-10-1976. The business of the assessee-firm is exhibition and distribution of pictures. During the accounting period relevant to the assessment year under appeal, the assessee took on 'minimum guarantee basis' an old film 'Muje Jeene Do'. The amount paid was Rs. 2,00,000 and the film was taken from Ajanta Arts, Bombay. The assessee released this picture on