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2013 (9) TMI 272 - ITAT HYDERABADAdmission of additional evidence - Held that:- The appellate authorities should exercise their discretion in permitting or not permitting the assessee to raise an additional ground/additional evidence in accordance with law and reasons. There is no blanket permission to the assessee to raise the additional ground or filing of additional evidence according to his own whims and fancies. There should be reasonable cause for furnishing additional evidence belatedly. In the present case, we find no reasonable cause for raising the additional grounds/evidences so belatedly. Considering the facts of the present case, we have no hesitation in declining to admit the additional evidences filed by the assessee before us and accordingly the additional evidence is rejected. - Decided against the assessee. Addition u/s 68 of the Income Tax Act – if this amount is duly assessed in the hands of Sri A. Mallikarjuna as his income, then taxing the same in the hands of the assessee would amount to double addition of the same amount. It cannot be permitted. Accordingly we direct the Assessing Officer to verify whether this amount taxed in the hands of Sri A. Mallikarjuna and if he has not filed any appeal against this addition in his hand or it reaches the finality by the decision of a superior judicial forum, then it should not be assessed once again in the hands of the present assessee. - Decided in favor of assessee. Addition of Rs. 31.5 lakhs towards CD/DVD/satellite/overseas rights as against Rs. 25 lakhs – Held that:- As per the agreement between the assessee and Gemini Television total consideration is of Rs.31.5 lakhs and out of which the assessee received only Rs. 25 lakhs and the balance is to be paid on the date of signing the agreement - As the agreement entered with G. Harinath was found to be false, the claim of amount received from him at Rs. 25 lakhs is totally contrary to the facts on record. Being so, the CIT(A) is justified in sustaining the addition of Rs. 31.5 lakhs on this count. Addition of Rs. 3 lakhs towards 16MM rights – Held that:- There was a seized document A/SRB/44 which was a xerox copy of agreement dated 16.10.2011 for sale of sole and exclusive exploitation of 16MM rights of the film “Maa Annaiah” for a period of 5 years from 25.12.2001 - The lessor and the lessee are the assessee firm and Sri MVVS Prasad son of Venkateswara Rao resident of Kovvur, West Godavari. Being so, no any infirmity in the order of the CIT(A) as the addition is based on the seized material and the same is confirmed. Unexplained expenditure u/s 69C of the Income Tax Act – Held that:- Where in any financial year the assessee incurs any expenditure thereof and the assessee fails to offer satisfactory explanation to the Assessing Officer, the amount covered by such expenditure may be treated as deemed income of the assessee for such financial year. The scheme of section 69C would show that in cases where the nature and source of investment made by the assessee or the nature and sources of acquisition of any asset owned by the assessee or the source of expenditure incurred by the assessee are not explained at all or not satisfactorily explained, then, the value of such investment and money or the value of articles not recorded in the books of account or unexplained expenditure may be deemed to be the income of the assessee. Deduction to be allowed in respect of unexplained expenditure included as deemed income in the hands of Assessee – Held that:- Because no source is disclosed at all on the basis of which the income can be classified under one of the heads of income under section 14, it would not be possible to classify such deemed income under any of these heads including income from other sources which have to be sources known or explained. When the income cannot be so classified under any one of the heads of income under section 14, it follows that the question of giving any deductions under the provisions which correspond to such heads of income will not arise. If it is possible to peg the income under any one of those heads by virtue of a satisfactory explanation being given, then these provisions of sections 69,69A, 69B and 69C will not apply, in which event, the provisions regarding deductions, etc., applicable to the relevant head of income under which such income falls will automatically be attracted - When the expenditure was not recorded in the books of account and the assessee failed to offer satisfactory explanation about the nature and source of such expenditure, there could arise no question of treating the value of such expenditure, which was deemed to be the income of the assessee, as deductible expenditure in the financial year, and hence, such deemed income did not fall under the head ‘Profits and gains of business or profession’ – Hence, no deduction is allowed in this resect – Decided in favor of Revenue.
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