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2019 (11) TMI 355 - AT - Income TaxAssessment u/s 153A - Suppression of receipts - assessee claimed before us that though as per agreement the minimum guarantee amount has been prescribed, however as the picture was flop and collection of the film was not upto the satisfaction of the distributor/second party, therefore, second party paid only ₹ 70,72,478.06/- and deducted the balance amount as rebate and discount as per mutual understanding - HELD THAT:- The observation of the CIT(A) based on no documents or material, as the assessee has claimed that the parties to the agreement have mutually agreed for receiving the amount lower than the minimum guarantee amount and therefore, question of filing any legal claim against the distributor for recovery of the remaining amount ₹ 37,27,522/- does not arise. Both the authorities below sidelined the e-mail confirmation from the second party and held that the said confirmation has no evidentiary value as it is only a self serving document. The confirmation from the second party was the best source to find out the exact figure which the assessee has received and which in the instant case the second party has replied by the sending email and there is nothing on record that the AO has ever tried to summon the second party in order to confirm the veracity of transaction and/or email. No doubt legal agreement has its own value and the legal actions depends upon the agreement/MOU, however, there is no bar to side line and/or amend and/or novation of agreement by way of written or otherwise orally for reaching to the just conclusion of the ultimate object(s) of the agreement, which in the instant case appears to be held orally. Even there is nothing on record to suggest that the assessee has received any other amount except ₹ 70,72,478/- out of ₹ 1,08,00,000/- and therefore, we are unable to find any substantive material to sustain the addition of ₹ 37,27,522/-, consequently the addition under challenge is liable to be deleted, hence stands deleted. Appeal filed by the Assessee stands allowed.
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