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TMI Blog2014 (1) TMI 1929X X X X Extracts X X X X X X X X Extracts X X X X ..... f facts of the case are that the assessee is an individual and is a Director and Producer of movies. For the AY 2007-08 the assessee filed a return of income declaring income of Rs.5,22,05,345/-. As there was a survey u/s.133A, the case was converted into scrutiny. The assessment was completed on a total income of Rs.8,93,80,545/-. While completing the assessment the AO made the following additions: * Addition on non accounting of cash receipts Rs. 31,00,000 * Addition on account of difference in collections of movie Rs.3,02,75,200 * Disallowance of production expenditure Rs. 38,00,000 3. Aggrieved by the above additions the assessee filed an appeal before the CIT(A), Hyderabad. The Ld. CIT(A) confi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d it is only a matter of trade practice that the same is sent to the producer. 4.1. It was also submitted by the Ld. Counsel that the year ending is 31.3.07 and the statement is upto 27.7.06. Hence, if at all the Assessing Officer should have taken the subsequent collections also which has not been done by him. He therefore stated that the only ledger account of Rs.1.40 crores is the amount debited to the assessee. The Ld. Counsel also pointed out that the distributor has not been examined. We have gone through the records and the submissions made by the Ld. counsel. We find from the Memorandum of Understanding pages 7 to 9 of paper book, wherein the producer have produced in their absolute right of ownership of film titled 'POKIRI' and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer and decide the issue in accordance with law. Further, we make it clear that the agreement produced by the assessee is self-serving document and it cannot be acted upon as the assessee categorically stated before the Assessing Officer that there was no agreement. Accordingly, this issue is remitted back to Assessing Officer for fresh consideration. 6. In the result the appeal of the assessee is partly allowed for statistical purposes. ITA 75/Hyd/2011 - DEPARTMENTAL APPEAL 7. With respect to the departmental appeal the grounds are as follows: 1. "The order of the ld. CIT(Appeals) is erroneous on facts and in law. 2. The ld. CIT(A) erred in deleting the disallowance made towards expenditure of Rs.38,00,000/- not met ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have made any addition on this count. the submission made by the Authorized Representative has been considered and the details furnished by the Authorized Representative also have been examined. Having verified the facts and circumstances of the case, I am of the view that the disallowance made by the Assessing Officer at Rs.38 lakhs is not correct since the two above mentioned distributors have made payments on behalf of the appellant and the said payments were later adjusted towards amounts receivable from the said distributors. therefore, having verified the facts of the case, I am of the opinion that the addition made by the Assessing Officer on this count cannot be sustained. Therefore, this ground of appeal is allowed." 10. Aggriev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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