2017 (2) TMI 1003

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....non-deduction of tax (TDS), by holding that the said payment is not towards rental expenses and the provisions of Section 194 I of the Act, which provides for TDS on payment of rent, are not applicable? (ii) Whether on the facts and circumstances of the case, the finding of the Tribunal is perverse, contrary to the record and untenable in the eye of law? 2. Brief facts of the case are that the assessee firm is engaged in this business of purchase and sales of shares and is also engaged in films business. The assessee has filed the return of income on 31/7/2007 declaring NIL income. However, subsequently the case was selected for compulsory scrutiny and notice under Section 143(2) was issued to the assessee on 8.9.2008. Further, a notic....

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....e to the first party. It will be useful to mention here that even the AO at page 4 of his order acknowledges this aspect in the following manner:- "Gross collection of Rs. 80,59,051/- was made by the Cinema Hall i.e. Space-1,2,3 for the period from 01.04.2006 to 31.05.2006 and after keeping a sum of Rs. 65,00,000/- towards the provisions of para 2 and 5 of the agreement, a sum of Rs. 15,59,051/- paid to the assessee by the Cinema Hall, which the assessee has shown as income from film business under the head of the income from other sources. Thus, in the computation of the income also, assessee has treated this income from the business of films." 14. In fact, the assessee did not have any control over the funds as the funds were collec....