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2015 (1) TMI 693 - ITAT MUMBAIEnhancement of income - revenue recognition - whether accrual of income has taken place or not? - CIT(A) held that the 1/5th of the consideration amounting to ₹ 2.30 crores in respect of the agreement of home video rights and satellite rights with Moser Baer granting rights for various films for a period of 5 years was assessable in the year under appeal - Held that:- Rights would commence in respect of each of the films on different dates and accordingly the assessee has offered the income in subsequent years as exhibited on page 22 to 24 of the paper book. These facts are so clear and it is difficult to hold or even to contend that there was accrual in the very first year. We, therefore, set aside the findings of the Ld. CIT(A) on this issue and direct the AO to delete the addition of ₹ 10.50 crores on account of revenue recognition. - Decided in favour of assessee. Addition u/s. 68 - unaccounted unsecured loans - Held that:- The loan was given by these persons to the assessee for which recovery proceedings are taken by the parties against the assessee, which proves beyond all doubts that the money was borrowed by the assessee. Subsequent payments by cheques on settlement also show that there remains no reason for making the impugned addition. We, accordingly, set aside the findings of the Ld. CIT(A) and direct the AO to delete the addition of ₹ 3.70 crores. - Decided in favour of assessee. Adhoc disallowance of 20% of motor car expenses, interest on car loan and depreciation - Held that:- Considering that in A.Y. 2004-05 adhoc disallowance was accepted by both parties. We do not find any reason to interfere with the findings of the Ld. CIT(A). Decided against assessee.
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