9911796707
TMI Blog1990 (2) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... hri Mohan Kumar Sharma for the purpose of disallowance under section 40(c) of the I.T. Act. He thereupon initiated proceedings under section 263 of the Act and, after considering the submissions and hearing of the arguments on behalf of the assessee, came to the finding that the assessment order of the ITO for the said year was erroneous in so far as it was prejudicial to the interests of revenue. Having come to this finding, the CIT set aside the assessment and directed the ITO to re-compute the taxable profits of the assessee-company by taking into account the aforesaid sum of Rs. 4,00,000 for the purpose of disallowance under section 40(c) of the Act. Having felt aggrieved by that order of the CIT the assessee has filed the present appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned counsel that the Tribunal in its aforesaid decisions had noticed the earlier judgment of the Karnataka High Court in T.T. (P.) Ltd. v. ITO [1980] 121 ITR 551. Although the assessment order of the ITO is not a detailed and speaking one, yet he shall be deemed to have noticed and taken into consideration those decisions of the Tribunal. Thus, the ITO's assessment order was based on an earlier decision of the Karnataka High Court and more than one decison of the Tribunal. Such assessment, order, therefore, could not be held to be erroneous so at to be revisable under section 263 of the Act. 5. We have carefully considered the facts and circumstances of the case and studied the aforesaid decisions of the Tribunal and the Karnataka Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court, changed its earlier view and held that since the payments were not made to Shri J. Omprakash in his capacity as the Managing Director of the assessee-company, but in his own right as a film artiste and director of motion pictures such payments could not be taken into consideration for the purpose of disallowance under section 40(c) of the IT Act. In the appeals relating to Vishal International Production (P.) Ltd.'s case the Tribunal was dealing with the case of payment by the assessee-company to its director, one Manoj Kumar, in respect of his services as story writer and leading actor in the film " POORAB AUR PASCHIM ". The facts of the case in the present appeal are on all fours with the facts of the aforesaid two cases deci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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