9911796707
TMI Blog2021 (6) TMI 307X X X X Extracts X X X X X X X X Extracts X X X X ..... vied on the additions made on account of (a) Advance received from Nopany & Sons Pvt l td., u/s 68 of the Act amounting to Rs. 1,50,00,000/-; (b) Addition on account of cessation of liability amounting to Rs. 13,33,365/-; & (c) Addition on account of debit balances written off amounting to Rs. 22,02,150/- 2. The appellant prays that the order of CIT(A) on the above grounds be set aside and that of the AO be restored. 3. The appellant craves leave to amend or al ter any ground or add a new ground which may be necessary. 2.The Brief facts of the case are that the assessee is an individual and is engaged in the business of film direction and feature films production and filed the return of income for the A.Y 2011-12 on 23.09.2011 disclosi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions have been deleted by the Hon'ble Tribunal, hence no penalty can be sustained and deleted the penalty and allowed the assessee appeal. Aggrieved by the order, the revenue has filed an appeal with the Honble Tribunal. 4. At the time of hearing none appeared on behalf of the assessee. The Ld.DR relied on the A.O. order. 5. We heard the Ld.DR and perused the material on record. The Ld.DR accepts that the Hon'ble Tribunal in quantum appeal has deleted the additions. We find that the CIT(A) relied on the order of the Honble Tribunal at page -3 par 7.1 which is read as under; "7.1 According to the appellant, all the additions on which penal ty was imposed by the AO has been deleted by the ITAT. The relevant part of the order is reprodu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . and another amount of Rs. 2,85,444/- in the name of Entertainment One. The AO require the assessee to confirm these liabilities from these parties but the assessee only enclosed the ledger account of the old balances carried forward from previous year. Accordingly, the AO issued notice to both the parties and in response to Filmkraft Pvt. Ltd. denied any such liability outstanding in their books and the other party Entertainment One, notice returned unserved. The assessee explained that during the FY 2011-12 relevant to AY 2012-13, the balances of these parties has been written off by the assessee and included in the income of the assessee. But the AO added the same in AY 2011-12 by holding that these liabilities have ceased to exist. Agg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder appeal, debit balances of Rs. 22,02,150/- and credit balances of Rs. 18,05,204/- were written off resulting in the write off of net debit balances of Rs. 3,96,946/-. The details thereof were filled before the AO and are contained at pages 22 to 24 of assessee's Paper Book. All these given the item-wise details of the debit and credit balances written off resulting in the write off of the net debit balances of Rs. 3,96,946/-. We find from the facts of the case that the AO has taxed the credit balances written off but unfortunately, he has disallowed the debit balances written off. This, to say the least, is grossly unfair and unreasonable. The assessee had explained that these balances were due in the normal course of the business. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
