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TMI Blog2024 (11) TMI 1313X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case, Ld. CIT(A) is legally justified in deleting disallowance of Rs. 5,21,02,473/- on account of excess production and broadcasting fee claimed during the year without appreciating the fact that the assessee failed to submit necessary documentary evidence to substantiate its claim during assessment proceedings even after providing sufficient opportunity of being heard ? 2. Whether in facts and circumstances of the case, the Ld. CIT(A) is legally justified in deleting addition of Rs. 5,21,02,473/- by admitting additional evidence under Rule 46A of the Income Tax Rules, 1962 (hereinafter referred as "the Rules") even when the assessee had not fulfilled conditions as laid down under Rule 46A of the Rules and specific denial of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - as under:- i Purchase of Traded Goods Rs.1,25,80,26,882/- ii Rate of P & B Fees 8% iii Production & Broadcasting Fees Rs.10,06,42,150/- iv Production & Broadcasting Fees as debited in P & L Rs.15,27,74,805/- Diff. (iv-iii) Rs.5,21,32,655/- 3.1. The AO show cause the assessee on 30.12.2016 on this assessee and noted that the CA of the assessee appeared on 31.12.2016 but expressed her inability to produce the said agreement effective from 01.04.2013. Further, the AO after analyzing the business model of the assessee observed that the same was destined to suffer losses and to never earn profit and considered it to be a well thought step for tax evasion. The AO on examination of the expenses submitted by the assessee on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - i) The charges levied by Star C] during the year were governed by two agreements. One was effective from 01.0421:113-tiit-3.11)11.3. Then an amendment was entered into from 01.09.2013 till the close of the year. ii) Production & broadcasting fees charged by Star C] from April to August was 15.70% whereas it was reduced to 8.0% from September to March. iii) In the assessment order he has calculated the fees for the entire year at 8% only. He thus arrived at a much lower expense then claimed and thus made an addition of Rs. 5,21,02,473/-. iv) We are challenging this addition on the above two grounds of not giving any time to explain our case and even otherwise making the addition without going through the Complete documents and agre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ire year whereas as per the submissions of the appellant and based on the document submitted as additional evidence which is the amendment agreement effective from 01.04.2013 (pages 50 and 51 of the paper book), the production and broadcasting fees is to be calculated at the rate of 15.7% for the period from 01.04.2013 to 31.08.2013. It is also seen from the submissions made that in the assessments made in the past, broadcasting fees at a higher percentage has been allowed in successive assessments. For instance for A.Y. 2012-13, the production and broadcasting fees was 18.5 % and the same was allowed. Similarly, production fees at higher rates has been allowed and the percentage accepted for A. Y. 2013-14 also. In the case under considerat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has only objected to the filing of the agreement in this regard effective from 01.04.2013 before the Ld. CIT(A) and not during the assessment proceedings despite opportunities given. 6.1. Considering the above facts, there is no ground to interfere with the finding of the ld. CIT(A) in deleting the disallowance of Rs. 5,21,32,655/-. Further, as per the submissions of the ld. AR about the short time made available to the assessee company for submitting the agreement effective from 01.04.2013, which has not been contested by the AO, it is held that there is no violation of Rule-46A in this case in admitting the agreement effective from 01.04.2013 by the Ld. CIT(A). Ground no.1 and 2 of the appeal is dismissed. 7. In the result, the appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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