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2015 (10) TMI 1059 - AT - Income TaxAddition on account of accommodation bills - activity controlled by an admitted entry provider Sh. S.K. Gupta - CIT(A) deleted the addition - Held that - None of the statements recorded before the A.O. Sh. S.K. Gupta has stated that his entire business is non genuine and all the bills issued by all his group companies are accommodation entries. He has at the same time not contradicted his categorical statement given before the Investigation Wing regarding the genuineness of the bills issued in the name of Swen Television Ltd. to the appellant company. Thus, from the statement of Sh. S.K. Gupta it cannot be concluded that the bills debited in the name of Swen Television Ltd. by the appellant company are not genuine. Rather his statement affirms that the bills from Swen Television Ltd. are genuine. Just because major concerns controlled by Sh. S.K. Gupta are admittedly issuing non genuine accommodation bills, it cannot be automatically presumed that all the bills issued by all the concerns of Sh. S.K. Gupta are non genuine. This is more so when he had admitted that he is doing some genuine business also in the names of some of the companies. Thus, in the case of appellant, no adverse view from the statement of Sh. S.K. Gupta can be taken to come to the conclusion that the bills from Swen Television Ltd. are non-genuine and accommodation bills - Decided in favour of assessee.
Issues involved:
1. Addition of accommodation bills issued by M/s Swen Television Ltd. 2. Non-production of rate card and TRP rating of telecaster M/s Jhankar TV and lack of evidence of payment made by M/s Swen Television Ltd. 3. Validity of CIT(A) order and grounds of appeal. Issue 1: The appeal by the Revenue was against the deletion of the addition of Rs. 80,13,936, including service tax, on account of accommodation bills issued by M/s Swen Television Ltd. The CIT(A) had deleted the addition based on additional evidence produced during the appellate proceedings. The CIT(A) considered the statement of Sh. S.K. Gupta, the entry provider, and concluded that the bills from Swen Television Ltd. were genuine and not accommodation bills. The CIT(A) emphasized that just because other concerns controlled by Sh. S.K. Gupta issued non-genuine bills, it did not automatically imply that all bills from his concerns were non-genuine. The CIT(A) found no adverse view from Sh. S.K. Gupta's statement to conclude that the bills from Swen Television Ltd. were not genuine accommodation bills. Issue 2: The Revenue argued that the CIT(A) erred in ignoring the non-production of the rate card and TRP rating of M/s Jhankar TV, as well as the absence of evidence to establish payments made by M/s Swen Television Ltd. for telecasting the assessee's advertisement. However, the appellate tribunal cited previous decisions where similar issues were addressed. In those cases, it was held that disallowing expenditure due to lack of rate card, TRP rating, and sample agreement with the client was not justified. The tribunal agreed that the assessee was entitled to the deduction of expenditure incurred for advertising on Jhankar TV through M/s Swen Television Ltd. Issue 3: The Revenue contended that the CIT(A) order was erroneous and not tenable in law and on facts. However, the tribunal found that the issues in the present case were identical to previous cases where the CIT(A) order was upheld based on evidence and reasoning. Consequently, the tribunal dismissed the appeal filed by the Revenue, stating that the CIT(A) order was reasonable and did not warrant any interference. In conclusion, the tribunal dismissed the Revenue's appeal, upholding the CIT(A) order based on the evidence presented and the reasoning provided in previous similar cases.
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