TMI Blog2016 (9) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... between the parties. In our opinion, as rightly pointed out by the ld. DR, the evidence brought on record by the assessee, the assessee has not discharged his burden cast upon him to substantiate the source and genuineness of the transaction. In these circumstances, it is appropriate to hold that the deposit of ₹.30 lakhs in the Dena Bank account has not properly explained. Therefore, the provisions of section 69 of the Act was rightly invoked by the Assessing Officer and confirmed by the ld. CIT(A). - Decided against assessee Adhoc addition towards gross remuneration for “Kushi” – Hindi version of movie - Held that:- Admittedly, in this case, the assessee has filed a statement before us confirming the receipt of income from Naras ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of addition of ₹.30 lakhs deposited in the bank as unexplained investment under section 69 of the Income Tax Act, 1961 [ Act in short]. 2.1 The Brief facts of the case are that at the time of assessment proceedings, the Assessing Officer found that the assessee has deposited an amount of ₹.30 lakhs in his bank account maintained in Dena Bank, T. Nagar Branch, Chennai in account No. 10728, which had been invested on the same day in the fixed deposit in FD/4461/3 on 21.12.2001. The Assessing Officer has called for explanation for this amount regarding source and nature of the transactions. The assessee has not filed any details before the Assessing Officer. Therefore, the Assessing Officer treated the amount of ₹.30 lak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee should have been explained the entire transaction between the assessee and Shri Prasad Potluri and the circumstances under which it was paid by Shri Prasad Potluri to the assessee on behalf of Indira Production Pvt. Ltd. Further, the Assessing Officer during the course of assessment requested Indira Production Pvt. Ltd. for the personal appearance and explains it. But, instead of personal appearance before the assessing authority, they opted to send the statement of account, which does not explain itself the nature of transaction between the parties. In our opinion, as rightly pointed out by the ld. DR, the evidence brought on record by the assessee, the assessee has not discharged his burden cast upon him to substantiate the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own was ₹.40 lakhs. Against enquiry with Shri Bonny Kapoor, who has stated that the original agreement for directing Hindi version of Kushi , it was agreed for ₹.1.50 crores and he was actually paid ₹.1,15,96,614/- during the year ended 31.03.2002 and 31.03.2003 and balance amount of ₹.34,13,386/- was outstanding, which was not paid to the assessee since Shri Bonny Kapoor has written back the sum in his books of account in the assessment year 2005-06. This amount of ₹.1,15,96,614/- also includes an amount of ₹.11 lakhs as consideration for distribution rights for Tamil Nadu circuit for the Hindi film Kushi . Further, at the time of assessment, the assessee filed revised computation of income which reads ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ows: Rs. Total income returned 40,00,000 Add: Disallowance as discussed above 1. Difference of gross remuneration as per the movie Kushi Hindi version 1,00,00,000 2. Telugu Kushi remuneration 13,00,000 3. Unexplained investment 30,00,000 1,83,00,000 Less: Office expenses and air ticket 14,61,586 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed at ₹.1,27,28,414/- subject to our finding in para 3.5 herein below and instead of making addition of ₹.1.00 crore by overlooking this revised statement. Accordingly, we direct the Assessing Officer to consider the revised computation of income for the assessment year 2002-03 with reference to the income at ₹.1,27,28,414/- subject to our finding in para 3.5 herein below. In other words, the assessee is not entitled for loss of ₹.11 lakhs in respect of Kushi Telugu movie. 3.5 Coming to other ground raised by the assessee with regard to the disallowance of expenditure of ₹.11 lakhs towards expenditure incurred towards the loss from expenditure of Kushi Hindi version in Tamilnadu circuit. The ld. AR has n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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