KAPISHEK FILMS P. LTD, MUMBAI V. ITO WD 16(1)(2), MUMBAI

ITA 5828/MUM/2018

• Counselvise Citation: [2019] 114 COUNSELVISE.COM (IT) 6118 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 09-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R BHOOPATHI
• Keywords: Set aside
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC, BENCH MUMBAI BEFORE SHRI G. MANJUNATHA, ACCOUNTANT MEMBER & SHRI RAM LAL NEGI, JUDICIAL MEM BER ITA NO.5828/MUM/2018 ( ASSESSMENT YEAR :2012-13 ) M/S. KAPISHEK FILMS PRIVATE LIMITED C/O. MR. SURENDRA VERMA 902, 9 TH FLOOR DEV PRESTIGE BLDG A WING, VIRA DESAI ROAD AMBOLI, ANDHERI(WEST) MUMBAI-400 058 VS. ITO-16(1)(2) AAYKAR BHAWAN MUMBAI-400 020 PAN/GIR NO.AABCK9351N APPELLANT ) .. RESPONDENT ) ASSESSEE BY TANMAY PHADKE REVENUE BY R. BHOOPATHI DATE OF HEARING 01/10 /201 9 DATE OF PRONOUNCEMENT 01/ 10 /201 9 / O R D E R PER G.MANJUNATHA (A.M) : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)4, MUMB AI, DATED 10/07/2018 AND IT PERTAINS TO THE ASSESSMENT YEAR 2 012-13. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- A. THE ORDER PASSED BY THE LD.CIT(A) IS CONTRARY TO LAW AD LIABLE TO BE QUASHED AND/OR SET ASIDE. ITA NO.5828/MUM/2018 KAPISHEK FILMS PVT.LTD. 2 B. THE LD.CIT(A) OUGHT TO HAVE ALLOWED THE ADDITION OF RS.2,50,000/- ON ACCOUNT OF RECEIPT FROM GLOBAL ADVERTISER (PROP. MR . SANJIV MANMOHAN GUPTA). C. THE APPELLANT CRAVES LEAVE TO ADD/AMEND/ALTER TH E ABOVE GROUNDS AND PRAYS THAT THE PRESENT APPEAL BE ALLOWED. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESEE COMPANY IS ENGAGED IN THE BUSINESS OF FILMS AND CINEMA PRODU CTION, FILED ITS RETURN OF INCOME FOR AY 2012-13 ON 27/09/2012, DECL ARING TOTAL LOSS AT RS. 2,55,120/-. THE CASE WAS SELECTED FOR SCRUTI NY AND THE ASSESSMENT HAS BEEN COMPLETED U/S 143(3) OF THE I.T .ACT, 1961 ON 05/03/2015 AND DETERMINED TOTAL INCOME AT RS. 17,45 0/- BY MAKING ADDITIONS TOWARDS AMOUNT RECEIVED FROM M/S. GLOBAL ADVERTISERS AMOUNTING TO RS. 2,50,000/- AS PER FORM 26AS, ON T HE GROUND THAT SAID RECEIPT HAS NOT BEEN DISCLOSED IN PROFIT AND LOSS ACCOUNT. THE LD. AO HAD ALSO MADE ADDITIONS TOWARDS ADHOC DISALL OWANCE OF 15% VARIOUS EXPENDITURE. THE ASSESSEE CARRIED THE MATER IN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY. THE LD.CIT (A ) FOR THE DETAILED REASONS RECORDED IN HIS APPELLATE ORDER PARTLY ALLO WED, APPEAL FILED BY THE ASSESSEE, WHERE HE HAD ALLOWED RELIEF IN RES PECT OF ADHOC DISALLOWANCE OF CERTAIN EXPENDITURE. HOWEVER, CONFI RMED ADDITIONS MADE BY THE LD. AO TOWARDS AMOUNT RECEIVED FROM M/S GLOBAL ADVERTISERS. AGGRIEVED BY THE LD.CIT(A) ORDER, THE ASSESSE IS IN APPEAL BEFORE US. ITA NO.5828/MUM/2018 KAPISHEK FILMS PVT.LTD. 3 4. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATE RIAL AVAILABLE ON RECORD AND GONE THROUGH ORDERS OF THE AUTHORITIE S BELOW. THE FACTUAL MATRIX OF THE IMPUGNED DISPUTE ARE THAT DU RING THE YEAR UNDER CONSIDERATION, THE ASSESSEE HAS RECEIVED A SU M OF RS. 2, 50,000/- FROM M/S. GLOBAL ADVERTISERS, FOR SPONSORS HIP OF AUDIO CASSETTE RELEASE OF A FUTURE FILM PRODUCED. THE AS SESSEE HAS ORGANIZED AUDIO RELEASE PROGRAMME AT HOTEL SUN-N-S AND AND INCURRED AN AMOUNT OF RS. 3,07,785/-. THE ASSESEE H AS DEBITED PAYMENT MADE TO SUN-N-SAND HOTELS PVT.LTD AMOUNTING TO RS. 3,07,785/- TO AUDIO RELESE EXPENSES ACCOUNT AND CRE DITED AMOUNT RECEIVED FROM M/S. GLOBAL ADVERTISERS AMOUNTING TO RS. 2,50,000/- AND NET BALANCE OF RS. 57,785/- HAS BEEN DEBITED UN DER THE HEAD AUDIO RELEASE EXPENSES IN THE PROFIT AND LOSS ACCOU NT. THE LD. AO HAS MADE ADDITIONS TOWARDS AMOUNT RECEIVED M/S GLOB AL ADVERTISERS, ON THE GROUND THAT SAID RECEIPT HAS NO T BEEN INCLUDED IN PROFIT AND LOSS ACCOUNT. THE LD. CIT(A) CONFIRMED A DDITIONS MADE BY THE LD. AO ON SIMILAR GROUNDS. THE ASSESSE HAS FILE D A PAPER BOOK, WHICH CONTAINS FINANCIAL STATEMENTS FILED FOR THE Y EAR UNDER CONSIDERATION. WE FIND THAT THE ASSESSEE HAS CREDIT ED AMOUNT RECEIVED FROM GLOBAL ADVERTISERS TO AUDIO RELEASE E XPENSES AND DEBITED AMOUNT PAID TO M/S SUN-N-SAND HOTEL PVT.LTD TOWARDS ORGANISING AUDIO RELEASE FUNCTION TO SAID ACCOUNT, AND THE DIFFERENCE ITA NO.5828/MUM/2018 KAPISHEK FILMS PVT.LTD. 4 OF RS. 57,785/- HAS BEEN DEBITED INTO THE PROFIT AN D LOSS ACCOUNT UNDER THE HEAD CAST OF PRODUCTION AND SHOWN UNDER C URRENT ASSETS AND LOANS AND ADVANCES IN THE BALANCE SHEET. ALL TH ESE EVIDENCES ARE PART OF PAPER BOOK FILED BY THE ASSESSEE. THE A SSESSE CLAIMS THAT SAID EVIDENCES HAS BEEN FILED BEFORE THE LD. A O, AS WELL AS LD.CIT(A). THEREFORE, WE ARE OF THE CONSIDERED VIEW THAT WHEN, ASSESSEE HAS FILED SUFFICIENT EVIDENCES TO PROVE TH AT AMOUNT RECEIVED FROM M/S. GLOBAL ADVERTISERS HAS BEEN INCL UDED INTO THE PROFIT AND LOSS ACCOUNT AGAINST CORRESPONDING EXPEN DITURE INCURRED FOR SAID PURPOSE, THERE IS NO REASONS FOR THE LD. A O, AS WELL AS LD.CIT(A) TO MAKE ADDITIONS TOWARDS AMOUNT RECEIVED FROM M/S. GLOBAL ADVERTISERS, TOWARDS SPONSORSHIP. THEREFORE, WE ARE OF THE CONSIDERED VIEW THAT THE LD. AO WAS ERRED IN MAKING ADDITIONS TOWARDS AMOUNT RECEIVED TOWARDS SPONSORSHIP. THE LD .CIT(A) WITHOUT APPRECIATING THE FACTS SIMPLY CONFIRMED ADD ITIONS MADE BY THE LD. AO. HENCE, WE REVERSE THE FINDINGS OF THE L D.CIT(A) AND DIRECT THE AO TO DELETE ADDITIONS MADE TOWARDS AMOU NT RECEIVED FROM GLOBAL ADVERTISERS. 5. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED. ITA NO.5828/MUM/2018 KAPISHEK FILMS PVT.LTD. 5 ORDER PRONOUNCED IN THE OPEN COURT ON THIS 01 /10/ 2019 SD/- ( RAM LAL NEGI ) SD/- ( G. MANJUNATHA ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 01/10/2019 THIRUMALESH SR.PS COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//