1993 (2) TMI 43

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....years ended on March 31, 1972, and March 31, 1973, respectively. It appears that the assessee had a permanent assignment with Messrs. Caprica Film Enterprises Private Ltd. As per the terms of the agreement entered into between the assessee and the said company, the assessee's services were made available to the said company for which the said company had agreed to pay a remuneration of Rs. 80,000 per annum to the assessee. The said company had undertaken to enter into agreement with film producers directly and receive all the payments. The said company is being assessed by the First Income-tax Officer, Film Circle, Bombay. One of the objects contained in the memorandum of association of the said company was to make available artists, tec....

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....ee to evade tax. In the appeal before the Appellate Assistant Commissioner of Income-tax, the assessee contested the addition of Rs. 45,001 and Rs. 3,35,000 on the ground that the arrangement entered into between herself and the said company was a genuine one and she was entitled only to Rs. 80,000 per annum from the said company. It was further submitted that there was no attempt to hide the source of income or to evade tax as held by the Income-tax Officer. Relying on an unreported decision of this court in the case of Shobhna Pictures, wherein on almost identical facts as are obtaining in this case, it was pointed out that similar addition made by the Income-tax Officer was deleted by the appellate authorities and the High Court was p....

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.... prior to the decision of the Supreme Court in the case of Mc Dowell and Co. Ltd. v. CTO [1985] 154 ITR 148, wherein the Supreme Court has deprecated any attempt made by the taxpayers to avoid/evade taxation. According to him, in order to decide the question referred to us, we must keep that decision in view. Learned counsel for the assessee, on the other hand, submitted that since the issue involved in the present case is squarely covered by the decision in the case of Shobhna Pictures, we should uphold the action of the Tribunal in deleting the additions made by the Incometax Officer. He also stated that, apart from making the wild allegations, the Revenue has not brought any material can record to show that there was any attempt to evade....