TaxTMI 
TaxTMI 
2021 (5) TMI 911
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....the matter before the CIT(A) who vide order dated 29.05.2014 (in Appeal No.47/13-14) granted substantial relief to the assessee. Aggrieved by the order of CIT(A), Revenue is now in appeal before us and has raised the following grounds of appeal : 1. "The Ld CIT(A) erred in law and on facts in deleting the addition of Rs. 6,00,000/- by not appreciating the fact of the case and explanation 2 to Section 9(1)(VI) of IT Act, 1961. 2. The Ld. CIT(A) erred in law and on facts in deleting the additions of Rs. 20 lacs which had not been recorded by the assessee in his books of accounts despite TDS deduction on the said amount and the assessee failed to substantiate his claim by documentary evidence." 4. The Revenue subsequently vide letter dated 31.7.2019 has stated that due to typographical error, the amount in ground no.1 is stated to be Rs. 6,00,000/- while the correct amount should be considered to be Rs. 6,00,00,000/-. After considering the aforesaid letter, we proceed to dispose of the appeal. 5. Ground No.1 is with respect to the deletion of addition of Rs. 6 crore by CIT(A). 6. During the course of assessment proceedings, AO noticed that assessee had debit....
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....ported the order of AO. 9. Learned AR on the other hand reiterated the submissions made before the lower authorities and further submitted that assessee had paid Rs. 6 crore as Minimum Guarantee Royalty to M/s Baba Art Limited for acquiring theatrical, distribution, exhibition and exploitation rights of the movie 'De Dana Dan' for the territory of Delhi and UP, and the minimum guarantee paid in terms of Film License MOU/ Agreement could not be considered as 'Royalty' as per the provisions of Section 194J of the Act as the case of the assessee was covered by the exception to the definition of Royalty under clause (v) to Explanation 2 to Section 9(1)(vi) of the Act wherein the payments relating to sale, distribution or exhibition of cinematographic films are excluded from the definition of Royalty. He further submitted that identical issue arose in assessee's own case in A.Y. 2011-12 before the Hon'ble Tribunal and the Tribunal vide order dated 27.04.2020 in ITA No.2880/Del/2016 had dismissed the ground of Revenue. He therefore submitted that in such a situation, no interference to the order of CIT(A) is called for. 10. We have heard the rival submissions and perused the materi....
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....ear under consideration and that of AY 2011-12. The Revenue has also not placed any material on record to demonstrate that the order of the co-ordinate Bench of the Tribunal in Assessee's own case for AY 2011-12 has been setaside/stayed/orverruled by higher judicial forum. In such a situation, we find no reason to interfere with the order of CIT(A). We therefore dismiss the ground of the Revenue. 12. Thus the ground of Revenue is dismissed. 13. Second ground is with respect to the deletion of additions of Rs. 20,00,000/- made by the AO. 14. AO noted that as per Form 26AS, the assessee has received a sum of Rs. 40,00,000/- from M/s. Eagle Home Entertainments Pvt. Ltd., under section 194J and on such sum Rs. 4,53,200/- was also deducted as TDS. As per the Ledger Account of M/s. Eagle Home Entertainments Pvt. Ltd., in the books of M/s. Sukrit Pictures, assessee had shown a receipt of Rs. 20,00,000/- from M/s. Eagle Home Entertainments Pvt. Ltd. as DVD rights. The assessee was asked to explain about the receipt of Rs. 40,00,000/- from the M/s. Eagle Home Entertainments Pvt. Ltd. to which assessee inter alia submitted that M/s. Eagle Home Entertainments Pvt. Ltd. paid Rs. 20,00....
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....lika Bazar, Cannaught Place, New Delhi - 110001, being a partnership firm, having the partners as Sh. Surender Suneja and Sh. Vinod Suneja, merged and became a division of M/s Eagle Home Entertainment Pvt. Ltd. having the registered office at J-12, Jungpura Extension, New Delhi-110014, w.e.f. 1-04-07 and that both the partners were Directors in the new company. Perusal of the Declaration letter from M/s Eagle Home Entertainments Pvt. Ltd. shows that it has been clearly stated that M/s Jordan Electronics has merged and become a division of M/s Eagle Home Entertainments Pvt. Ltd. and also other facts as claimed by the Learned Counsel. 8.27 Once the concern M/s Jordan Electronics has merged with M/s Eagle Home Entertainments Pvt. Ltd., it is obvious that the payments for the liabilities of M/s Jordan Electronics will be made by M/s Eagle Home Entertainments Pvt. Ltd. The Learned Assessing Officer has brushed aside the declaration form M/s Eagle Home Entertainments Pvt. Ltd., and has stated that the authenticity of this declaration letter is in question because it is not endorsed by M/s Jordan Electronics. However, the Ld. Assessing officer has filed to appreciate that once M/....
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....inued in the books of account of Assessee, in the account of M/s Jordan Electronics even if the payment was received from M/s Eagle Home Entertainments Pvt. Ltd., once he was aware that the payment was for the outstanding balance of M/s Jordan Electronics particularly when Jordan Electronics has merged with M/s Eagle Home Entertainments Pvt. Ltd. It can at most be argued that if M/s Jordan Electronics had merged with M/s Eagle Home Entertainments Pvt. Ltd., than the assessee should also have merged the account of M/s Jordan Electronics with that of M/s Eagle Home Entertainments Pvt. Ltd., so as to create one account where the entire receipt of Rs. 40,00,000/- could be accounted for. However, once the entire amount of Rs. 40,00,000/- is accounted for in the books of the Assessee, no addition u/s 69A can be made merely because the receipt was disclosed as Rs. 20,00,000/- each in two different accounts. Thus there is no merit in the addition of Rs. 20,00,000/- made u/s 69A which is hereby deleted. Accordingly, ground of appeal 2(d) & 8 are allowed." 15. Aggrieved by the order of CIT(A), Revenue is now before us. Before us, Learned DR took us to the findings of AO and supported the ....