TaxTMI 
TaxTMI 
2017 (1) TMI 1245
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....me-tax (Appeals) erred disallowance of Rs.84,98,000/- invoking the provisions of Sec. 40(a)(ia) of the Income Tax Act in respect of payments effected to the Artists. 1.2 The Commissioner of Income-tax (Appeals) failed to note that the provisions of Sec. 40(a)(ia) applies only in respect of amount "payable". 2. The Commissioner of Income-tax (Appeals) erred in confirming the disallowance u/s 40A (3) of the Act, without noticing the fact that these amounts had not been paid by the Assessee but paid by the Film Distributors directly to the Gemini Lab on behalf of the Assessee. 3. The Commissioner of Income-tax (Appeals) erred in confirming the disallowance of loss of Rs. 14,61,265/-, in respect of aborted film 'Ashok Mithran'.....
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....section 148 was issued to assessee on 30.03.2009. A notice under section 142(1) of the Act was also issued on 17.09.2009. The assessee has filed a return of income on 28.12.2010 declaring an income of Rs..5,18,300/-. Thereafter, a notice under section 143(2) of the Act was served on the assessee. After considering the materials available on record, evidences gathered and return of income filed by the assessee, the Assessing Officer has completed the assessment under section 143(3) r.w.s. 147 of the Act on 31.12.2010 assessing total income of the assessee at Rs..1,15,00,305/- by making various disallowances. 4. The assessee carried the matter in appeal before the ld. CIT(A). After considering various submissions, but not accepting the sam....
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....d by the ld. CIT(A) should be set aside and the disallowances made by the Assessing Officer should be deleted. 6. On the other hand, the ld. DR strongly supported the orders of authorities below. 7. We have heard both sides, perused the materials available on record and gone through the orders of authorities below. With regard to the confirmation of disallowance of Rs..84,98,000/- under section 40(a)(ia) of the Act, during the year ended 31.03.2006, the assessee has debited various expenses incurred towards payments made to artists and technicians for production of film "February 14" and "Ghajini" of Rs..8,14,500/- and Rs..76,83,500/- respectively without deducting TDS on the above payments. Since payments made to services of personal....
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....l, the appellant is disputing three issues only. They are, namely: i) The addition of Rs. 84,98,000/- on account of disallowance u/s.40(a)(ia) for non deduction of tax. ii) The addition on account of disallowance of cash payments u/s.40A(3); and iii) The disallowance of loss of the production for movie" Ashoka Mitran". 5.1 The appellant is accepting the other additions. 5.2 The appeal is filed belatedly by 29 days. The same is condoned and the appeal is admitted. 5.3 The case was posted for hearing on various occasions, the final hearing been for 20.02.2013. 5.4 The appellant vide his letter dated Nil, received on 05.09.2012, sought time till November 2012. As per his request the case was reposted to 2....
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.... have paid their taxes. Due to their busy schedule I could not get certificate from them. Kindly grant three months time so that I can get a certificate from them. As per notification No.37/2012 [F.No.142/18/2012 - SO(TPL)] dated 12.09.2012 if payee has furnished his return of income under section 139 then no disallowance can be made in my case. Hence I request your good self to adjourn the hearing to April 2013." 6. It is seen that the appellant is not serious in prosecuting the appeal and he is only adopting delaying tactics. Also, the letters are stereotyped and are silent on two of the three grounds, ie., the loss on account of "Ashoka Mithran" and disallowance on account of section 40A(3). 7. In view of the above, and th....