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2018 (12) TMI 1642 - AT - Income TaxAddition of advances received - assessee claims that the addition received by way of banking channel - HELD THAT:- The assessee now filed an affidavit before this Tribunal from the said Shri V. Radhakrishnan and contends that the said Shri Radhakrishnan has confirmed the payment of ₹ 30 lakhs. In view of the factual situation, this Tribunal is of the considered opinion that the matter needs to be reexamined by the Assessing Officer. Disallowance of advertisement expenses - HELD THAT:- As per the agreement between the assessee and the film producer, the assessee has to produce the film and hand over it to the producer. The marketing and advertisement made for the purpose of exhibition of film are the functions of the producer and not the Director. The role of the director is only to direct the film and after completion, it has to be handed over to the producer. It is for the producer to make necessary advertisement, if any, to exhibit the same for public view. In view of the above, this Tribunal is of the considered opinion that the expenditure of ₹ 18,06,000/- is not for the business of the assessee. The business of the assessee is only direction of film and not doing marketing for exhibition of film. This Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. Disallowance towards editing charges - HELD THAT:- Editing charges is part of production of film / direction. Therefore, this Tribunal do not find any reason to interfere with the order of the lower authority. Accordingly, orders of both the authorities below are set aside and the issue of expenditure towards editing charges is deleted. Disallowance towards boarding and lodging - HELD THAT:- Assessee being the director of the film has to travel and stay for his business purpose. Therefore, there is no justification to disallow the expenditure. Hence, this Tribunal is unable to uphold the orders of the authorities below. Addition of donation and entertainment expenses - CIT(Appeals) confirmed the addition made by the Assessing Officer on the ground that there is no agreement - HELD THAT:- When the assessee is directing the film, he has to necessarily entertain certain people, who are employed in the course of production of film, in the course of his business of direction of cinema. Therefore, the assessee might have made donation of ₹ 250/- and expenses ₹ 400/- for entertainment in the course of his business of direction of film. Therefore, this Tribunal do not find any reason to interfere with the order of the lower authority. Accordingly, orders of both the authorities below are set aside and the expenditure incurred towards donation and entertainment expenditure is deleted.
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