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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 ..... production & other expenses as per the ground/s contained in the assessment order or otherwise. 2. On the facts and circumstances of the case and in law the Learned CIT(A) erred in confirming the action of Assessing Officer in disallowing sum to the extent of Rs. 6,15.600/-being the finance cost as per the ground/s contained in the assessment order or otherwise. 3. On the facts and circumstances of the case and in law the Learned CIT(A) 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 informa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted by assessee over and above the objection of the learned Assessing Officer against the admission of the additional evidences itself. The rejoinder of the assessee was obtained by him. 07. Thereafter, the learned CIT - A decided the respective issues as under :- i. With respect to the disallowance of the cost of production of television serial and other expenditure, where the learned Assessing Officer, in absence of 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned Assessing Officer. 11. With respect to the disallowance of television film production cost, it was submitted that the assessee is engaged in the business of film production. It was submitted that the assessee has disallowed on its own the expenses on which tax is deducted at source under section 40(a)(ia) of the Act, amounting to Rs. 1,41,70,444/-. It was further submitted that the disallowance is made 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 griev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reon. With respect to the brokerage expenditure, the assessee has already deducted tax at source and it is verified by the learned Assessing Officer and accepted. We find that the learned CIT - A has granted relief with respect to only Rs. 13,08,000/- pertaining to the interest paid to M/s Trilogic Digital Media Ltd. We find that interest expenditure of Rs. 3,24,000/- pertaining to the other parties has also 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 Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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