2021 (10) TMI 286 - HC - Income Tax

Assessment of income of Satellite Rights for a movie - Substantial question of law of fact - accounts filed by the vendor of the Satellite Rights, the Revenue assessed the assessee on a sum of ₹ 12,00,000/- - whether Tribunal erred assessing the appellant based on the statement of accounts of the appellant's vendor Shri.Manickkam Narayanan alone, ignoring the books of accounts of the appellant? - HELD THAT - Admittedly, the issue pertains to the transaction between the assessee and an individual in the matter of purchase and sale of Satellite Rights for a movie. The factual position has been clearly brought out by the Assessing Officer, which was re-examined for its correctness by the CIT(A), who found the same to be a reasoned order. The Tribunal, being the last authority to examine the factual position, examined the same and found that there is no error in the decision. On going through the material papers placed before us, we find that the entire issue is factual and the two authorities and the Tribunal have concurrently held against the appellant-assessee. Thus, we find, there is no question of law, much less substantial question of law arising for consideration in this appeal.

Summary

Issues:
Assessment based on vendor's statement of accounts ignoring appellant's books of accounts.

Analysis:
The appellant/assessee filed an appeal under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal for the assessment year 2002-03. The substantial question of law raised was whether the Tribunal was correct in assessing the appellant solely based on the vendor's statement of accounts, disregarding the appellant's books of accounts. The appellant contended that the Revenue assessed her based on the vendor's accounts related to the purchase and sale of Satellite Rights for a film, which led to discrepancies in the assessment. The appellant's appeal was heard by the High Court with representations from both sides.

The appellant, an individual, had purchased Satellite Rights for a film from a vendor in Chennai and subsequently sold them to a TV Channel. The Revenue disagreed with the appellant's accounts and relied on the vendor's statement of accounts to assess the appellant for a lesser amount. The Commissioner of Income Tax (Appeals) and the Tribunal upheld the assessment, leading to the appellant's appeal before the High Court. The High Court noted that the issue revolved around the transaction between the appellant and the vendor regarding the Satellite Rights, and the authorities had examined the factual position thoroughly. The Tribunal's decision was considered final after reevaluation by the Commissioner of Income Tax (Appeals).

Upon review of the case documents, the High Court found that the matter was primarily factual, and both lower authorities, along with the Tribunal, had ruled against the appellant. The High Court concluded that no legal question, let alone a substantial one, arose from the appeal. Therefore, the appeal was dismissed, and no costs were awarded to either party. The judgment highlighted the importance of factual examination in tax assessments and the finality of decisions made by lower tax authorities and the Tribunal in such matters.