INBOX PICTURES PRIVATE LIMITED,MUMBAI V. DCIT, CIRCLE-16 (1), MUMBAI

ITA 3774/MUM/2025

AI Insights

The case involves Inbox Pictures Private Limited, which appealed against the order of the Learned Commissioner of Income-tax (Appeals)-52, Mumbai, concerning the assessment year 2017-18. The primary issues in the appeal were the additions made to the assessee's income under sections 37(1), 69A, and 68 of the Income-tax Act, 1961, related to unsubstantiated expenses, unexplained cash deposits during the demonetization period, and sundry creditors. The Tribunal noted the absence of the assessee's representation during the hearings and the failure to provide necessary documentary evidence to substantiate the claims made. Consequently, the Tribunal dismissed the appeal, affirming the decisions of the lower authorities.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 786277 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Appeal Filed On: 28-05-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASSESSEE; AFTER HEARING LD.; R.A. DHYANI
• Keywords: Additional evidence
• Section: 143(3); 68; 37(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “C”, MUMBAI BEFORESHRI OM PRAKASH KANT, ACCOUNTANT MEMBER AND SHRI ANIKESH BANERJEE, JUDICIAL MEMBER I.T.A No.3774/Mum/2025 (Assessment Year: 2017-18) Inbox Pictures Private Limited 306, 3rd Floor, Plot No.B-9, Landmark, New Link Road, Andheri West, Mumbai-400 058 PAN : AAECI1196A vs DCIT, Circl-16(1), Mumbai 4th Floor, Aayakar Bhavan, M.K. Road, MumbaI-400 020 APPELLANT RESPONDENT Assessee by : None Respondent by : Shri R.A. Dhyani, (CIT DR) Date of hearing : 16/10/2025 Date of pronouncement : 30/10/2025 O R D E R Per Anikesh Banerjee, JM: The Instant appeal of the assessee was filed against the order of the Learned Commissioner of Income-tax (Appeals)-52, Mumbai [for brevity, ‘Ld. CIT(A)’] passed under section 250 of the Income-tax Act, 1961 (in short, the Act’) for Assessment Year 2017-18, date of order 19/11/2024. The impugned order emanated from the order of the Learned Assistant Commissioner of Income-tax, Printed from counselvise.com 2 ITA No.3774/Mum/2025 Inbox Pictures Private Limited Central Circle-16(1), Mumbai (in short, he ‘Ld.AO) passed under section 143(3) of the Act, date of order 24/12/2019. 2. When the appeal was called up for hearing, no one was present on behalf of the assessee. No adjournment petition was filed. On perusal of the record, we found the matter was fixed on 14/10/2025. On that date the Ld. AR appeared virtually and sought for adjournment. The adjournment as granted till 16/10/2025. But on 16/10/2025 none was present on behalf of the assessee. Considering the facts of the case we proceeded to dispose of the appeal exparte qua for assessee, after hearing Ld.DR. 3. We heard the Ld.DR and considered the documents available on the record. The Ld.DR filed a note, which is kept on record. The Ld.DR stated that the assessee is engaged in business of film production, film distribution, dubbing and mixing of films. The assessee was incorporated on 11/05/2016. Accordingly, this is the first year of operation. The return was filed on 01/03/2016 by declaring total income at Rs. 60,32,150/-. Finally, the assessee’s return was selected for scrutiny and the assessment order was framed u/s 143(3) of the Act with an addition of expenses u/s 37(1) of the Act, amount to Rs.61,61,000/-, addition u/s 69A r.w.s. 115BBE of the Act amount to Rs.66,21,567/- on account of the cash deposit during the demonetization period, and sundry creditors u/s 68 r.w.s. 115BBE of the Act amount to Rs.9,46,17,147/-. The aggrieved assessee filed an appeal before the Ld.CIT(A). The Ld.CIT(A), after considering the submissions of the assessee rejected the assessee’s appeal and upheld the additions. Being aggrieved, assessee filed an appeal before us. 4. We observe that the additions made in the assessee’s case pertain to disallowances under section 37(1) of the Act, amounting to Rs.21,01,000/- under Printed from counselvise.com 3 ITA No.3774/Mum/2025 Inbox Pictures Private Limited the head “Other Expenses” and Rs.40,60,000/- towards “Legal and Professional Fees,” aggregating to Rs.61,61,000/-. During the course of the assessment as well as the appellate proceedings, the assessee failed to furnish supporting documentary evidence to substantiate these expenditures. Consequently, the said additions were confirmed.With regard to the cash deposits made during the demonetisation period, the assessee could not satisfactorily explain the source of such deposits. Therefore, the addition made under section 69A of the Act was also confirmed. In respect of the addition relating to sundry creditors, the assessee had furnished additional evidence before the Ld. CIT(A) under Rule 46A of the Income-tax Rules, 1962. However, the Ld. CIT(A) was not convinced by the explanation offered by the assessee regarding the non-submission of such evidence before the Ld. AO. 5. During the appellate proceedings before the Tribunal, the assessee again failed to produce any documentary evidence in support of the claims made. Despite being afforded multiple opportunities, there was no representation on behalf of the assessee at the time of hearing. In view of these facts and in the absence of any credible material to rebut the findings of the revenue authorities, we find no reason to interfere with the order of the Ld. CIT(A). Accordingly, the appeal filed by the assessee stands dismissed. Printed from counselvise.com 4 ITA No.3774/Mum/2025 Inbox Pictures Private Limited 6. In the result, the appeal of the assessee bearing ITA No.3774/Mum/2025 is dismissed. Order pronounced in the open court on 30/10/ 2025 under Rule 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. Sd/- sd/- (OM PRAKASH KANT) (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai,िदनांक/Dated: 30/10/2025 Pavanan Copy of the Order forwarded to: 1. अपीलाथ /The Appellant , 2. ितवादी/ The Respondent. 3. आयकरआयु\u0014 CIT 4. िवभागीय ितिनिध, आय.अपी.अिध., मुंबई/DR, ITAT, JODHPUR 5. गाड\u0019फाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar), ITAT, MUMBAI Printed from counselvise.com "