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TMI Blog2017 (3) TMI 1375X X X X Extracts X X X X X X X X Extracts X X X X ..... 02.2016 pertaining to assessment year 2011-12. Since issues involved in all these Revenue's appeal as well as assessee's appeals are common in nature, these appeals are clubbed together, heard together, disposed off by this common order for the sake of convenience. 2. ITA No.1726/Mds./16 (Assessee's Appeal: A.Y 2010-11) 2.1 At the time of hearing, the ld. AR submitted that the assessee is not interested to press ground Nos.1, 2 &. 3. Accordingly, these grounds are dismissed as not pressed. 2.2. Now, the Ground Nos. 4 ,5 & 6 for our consideration is with regard to disallowance of Rs. 45,84,082/- is said to be incurred by the assessee towards exhibition of films taken on minimum guarantee basis on advertisement and other related expenses. 3. The facts of the issue are that the assessee incurred expenses to an extent of Rs. 45,84,082/- towards expenditure on purchase of DTS Discs., Purchase of Posters, issue of advertisement, purchase of film prints in respect of films Mahatma, Avathar, Akasa Ramana and Namaste London. The AO opined that the films involved were purchased under minimum guarantee basis and hence the expenditure did not qualify for deduction under Rule 9B of the Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that income is treated by the Revenue as 'income from other sources'. 6. The facts of the issue are that the assessee is having agricultural lands at Thiruneermalai and Poppalaguda Vilalge Ranga Reddy District, Andhra Pradesh. The assessee admitted agricultural income to an extent of Rs. 7,45,000/- from these lands. In the assessment order, the AO verified the claim of agricultural income and the assessee is asked to produce the evidences for agricultural income earned and bills for expenses incurred for such income. In the course of assessment proceedings, the assessee admitted before the AO that he does not have any evidence to prove the gross receipts from agricultural income. Therefore, the agricultural income is added by the AO to income of assessee. Aggrieved by the order of ld. Assessing Officer, the assessee carried the appeal before the Ld.CIT(A). On appeal, the Ld.CIT(A) observed that in the absence of evidence in supporting the claim of assessee, there is no error on the part of the AO in assessing the amount of Rs. 7,45,000/- as income from other sources. Against the order of Ld.CIT(A), the assessee is now in appeal before us. 7. We have heard both the parties and p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 271(1)(c) of the Act. According to him, since the AO has not doubted the holding of agricultural land and the income of assessee was treated as nonagricultural income only on the reason that the assessee has not produced the relevant details of agricultural income that itself cannot lead to conclusion thereof inaccurate particulars of income or concealment of income. Ld.A.R pleaded to delete the penalty. 8.3.1. Regarding levy of penalty on disallowance of expenditure claimed by the assessee towards advertisement. Ld.A.R submitted that it is not a false claim. Further, he relied on the judgmenet of Supreme Court in the case of Relaince Petroproductgs (P.) Ltd. in [2010] 322 ITR 158 (SC) wherein held that:- "A glance at the provisions of section 271(1)(c) of the Income-tax Act, 1961,suggests that in order to be covered by it, there has to be concealment of the particulars of the income of the assessee. Secondly, the assessee must have furnished inaccurate particulars of his income. The meaning of the word "particulars" used in section 271(1)(c) would embrace the details of the claim made. Where no information given in the return is found to be incorrect or inaccurate, the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. In respect of this, the assessee made an effort to claim that expenditure. As rightly pointed out by the ld.D.R, had it been no scrutiny, the assessee would have escaped and would have got deduction towards this expenditure and in our opinion this is a false claim by the assessee and it is not a wrong claim so as to apply that ratio laid down by the Supreme Court in the case of Relaince Petroproductgs (P.) Ltd. (supra). Accordingly, we confirm the order of Ld.CIT(A) and the restore the order of the AO and confirm the levy of penalty on this issue. Hence, the ground raised by the Revenue is allowed. 10.1 Regarding agricultural income, other than holding of the land, the assessee failed to produce any evidence regarding carrying on agricultural operations in the said land. Ld.A.R made an oral argument that the assessee in real sense carrying the agricultural operations. The Bench asked the ld.A.R whether the assessee is in a position to place any evidence to this effect, for which the answer from ld.A.R is negative. If the assessee carried on agricultural operations, at least there would have been certain receipts of sale of agricultural products or evidence regarding expenditur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITO reported in [2015] 40 ITR (Trib) 325 [Chennai] vide order dated 29.04.2015 wherein held that:- "4. We have heard both sides and perused the material on record. We find that the Special Bench of the Tribunal in the case of Merilyn Shipping and Transports v. Addl. CIT [2012] 16 ITR (Trib) 1 (Visakhapatnam) [SB] and judgment of the Gujarat High Court in the case of CIT v. Vector Shipping Services (P.) Ltd. in I. T. A. Nos. 122 of 2013 dated July 9, 2013 [2013] 357 ITR 642 (All) held that section 40(a)(ia) is not applicable when there is no outstanding balance at the end of the close of the year relevant to the assessment year in respect of these payments. However, the assessee has not brought on record, the details of outstanding expenses or schedule of sundry creditors showing whether the impugned amount is outstanding at the end of the close of the previous year relevant to the assessment year either in the name of the party or outstanding expenses. Hence, in the interest of justice, we are remitting the issue back to the file of the Assessing Officer with direction to verify the claim of the assessee and the assessee shall place necessary evidence in support of his claim. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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