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TMI Blog2024 (1) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... e confirmed by the learned CIT A is also pertaining to the loan, which is accepted by the lower authorities as genuine. Therefore, the disallowance to the extent of Rs. 3,24,000/- deserves to be deleted. With respect to the balance interest of Rs. 64,661/, on which assessee itself has disallowed the sum for non-deduction of tax at source, therefore, the said disallowance if retained would result into double disallowance. Therefore, the same is also deleted. With respect to the brokerage expenses there is no adverse view of the learned AO. Accordingly, we direct the learned Assessing Officer to delete the disallowance of the same. Accordingly, the total disallowance retained of Rs. 6,15,600/-, the assessee deserves a further relief of Rs. 4,51,161/-. Accordingly, the disallowance confirmed by the learned CIT -A to that extent is deleted. In the result, the ground No.2 of the appeal is partly allowed. Unexplained addition of assets - AO noted that the assessee has claimed that depreciation on account of addition on plant and machinery and further sum towards furniture and fixture. This was the addition made to the block of assets during the year. Naturally, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erred in confirming the action of Assessing Officer in making an addition of Rs. 10,70,392/- on account of alleged unexplained addition of assets as per the ground/s contained in the assessment order or otherwise. 03. The brief facts of the case shows that assessee, a company engaged in the business of production house of telecast, filed its return of income on 31/3/2016, declaring total income of Rs. 14,77,630/ . The return of income was picked up for the scrutiny. The assessee company did not furnish the required details, asked for by the learned Assessing Officer, supporting its return of income. Therefore, the learned Assessing Officer proceeded to make the assessment. Despite opportunities given by the learned Assessing Officer, no information was forthcoming and therefore, the learned Assessing Officer proceeded to make the assessment under section 144 (1) of the Act. 04. The learned Assessing Officer noted that the i. assessee has borrowed short-term borrowing of Rs. 2,01,15,600/- shown under the current liability as on 31/3/2014 and which was as on 31/3/2013 at Rs. 3,10,000/- only. Accordingly, he found that the assessee has obtained loan from four different entit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any documentary evidence, has disallowed 10% of the expenditure, amounting to Rs. 33,28,272/ , the learned CIT - A, after considering the submission of the assessee and the remand report, disallowed 2% of the expenditure, for which no evidence has been produced. Therefore, the learned CIT A disallowed 2% of the expenditure, for which no evidence has been produced. Accordingly, Rs. 3,82,245/ was disallowed on an expenditure of Rs. 1,91,12,271/-. The learned Assessing Officer has disallowed the sum of Rs. 3,32,82,715/-. Out of that, the assessee itself has disallowed on its own a sum of Rs. 1,23,12,440/- on account of non-deduction of tax at source and further Rs. 18,58,004/- under section 43B of the Act. Accordingly, these two disallowances already made by the learned assessee were reduced from the total amount, on which the disallowance was made. ii. With respect to the finance cost of Rs. 17,59,161/-, the learned CIT A directed the learned Assessing Officer to restrict the disallowance to Rs. 6,15,600/-, as the balance interest cost of Rs. 13,08,000/- is pertaining to interest paid to M/s Trilogic Digital Media Ltd., which was accepted by the learned Assessing Officer as g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only based on estimation. The assessee has offered the income of film production during the year and, therefore, the ad-hoc disallowance made by the learned Assessing Officer and confirmed by the learned CIT A is not correct. 12. The learned Departmental Representative submitted that the assessee has failed to produce the details before the learned lower authorities and therefore, the learned CIT A is very reasonable in restricting the disallowance of the expenditure @ 2% only. He further submitted that the assessee s own submission was that the disallowance should be restricted on the balance amount of Rs. 2,09,70,275/-. The learned CIT - A has restricted the disallowance only to the extent of Rs. 1,91,12,271/ and therefore, the assessee should not have any grievance. 13. We have carefully considered the rival contentions. We find that the assessee is engaged in the business of film production. The assessee has incurred total expenditure on the film production of Rs. 3,32,82,715/-, on a part of which, there was failure on the part of the assessee to deduct tax at source and further some of the amount was hit by the provisions of section 43B of the Act. The assessee in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been accepted by the learned Assessing Officer, therefore, the learned CIT -A should have deleted the addition. Therefore, after careful consideration and hearing the parties, we find that a sum of Rs. 3,24,000/- disallowance confirmed by the learned CIT A is also pertaining to the loan, which is accepted by the lower authorities as genuine. Therefore, the disallowance to the extent of Rs. 3,24,000/- deserves to be deleted. With respect to the balance interest of Rs. 64,661/, on which assessee itself has disallowed the sum for nondeduction of tax at source, therefore, the said disallowance if retained would result into double disallowance. Therefore, the same is also deleted. With respect to the brokerage expenses of Rs62,500/-, there is no adverse view of the learned Assessing Officer. Accordingly, we direct the learned Assessing Officer to delete the disallowance of the same. Accordingly, the total disallowance retained of Rs. 6,15,600/-, the assessee deserves a further relief of Rs. 4,51,161/-. Accordingly, the disallowance confirmed by the learned CIT -A to that extent is deleted. In the result, the ground No.2 of the appeal is partly allowed. 16. Ground No.3 of the appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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