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2019 (9) TMI 460

..... not be made and the assessee cannot be subjected to double taxation. We realized that the said addition has already been made by the AO while framing the assessment order dated 04.12.2009 u/s 143(2). Though the assessee did not disclose the said addition in the return filed u/s 153A of the Act, however, it is a fact that the assessee has already paid the taxes on the said addition, which is not refuted by the Revenue Department, hence the instant addition of ₹ 1,06,000/- is not warranted because if allowed, then the same would amount to double taxation hence, we are inclined to delete the same, consequently, the same stands deleted. Addition of sum alleged to have been paid to Sh Sardool Sikander, a singer pursuant to an agreement - rejecting the assessee’s contention that the same had been cancelled - re-assessment proceedings 147 have been initiated on dated 26.03.2015 against the singer who made the agreement with the assessee - HELD THAT:- CIT(A) in the instant case though have taken into consideration, the conclusion drawn by the said AO in the assessment proceedings initiated against the singer u/s 147 of the Act, however observed that the Assessing Officer has pa .....

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..... T(A), who though partly deleted the additions, however, sustained some of the additions against which the assessee has filed the instant appeal on the following grounds. 1. That when no assessment proceedings were pending for this year on the date of search, since the return originally filed had already been assessed u/s. 143(2) prior to search, no re-assessment could be made to make several additions, for want of any incriminating document found in search. 2. That the ld.CIT(A) grossly erred in upholding the adhoc addition of ₹ 2,02,809/-, made by disallowance of 10% of the aggregate expenses under the head audio & video making charge + publicity expenses sans a finding that said expenses were either not actually incurred or not incurred for business purposes. 2.1 That when a disallowance of ₹ 1,06,000/- had already been made earlier under regular assessment, no fresh disallowance could be made and sustained beyond the said figure, more so when no incriminating document was found in search to justify a higher disallowance. 3 That the ld.CIT(A) was wholly unjustified and unreasonable in sustaining the addition of ₹ 5,00,000/- alleged to have been paid to Sh Sa .....

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..... see has already paid the taxes on the said addition, which is not refuted by the Revenue Department, hence the instant addition of ₹ 1,06,000/- is not warranted because if allowed, then the same would amount to double taxation hence, we are inclined to delete the same, consequently, the same stands deleted. 8. Ground No.3 & 3.1 are related to each other. While making the addition of ₹ 5,00,000/-, the Assessing Officer observed that during the course of search at the residence of Sh. Dinesh Auluck, who is one of the partners of the assessee firm, some loose documents were found and seized as pages-132 to 134 of Annexure-A-1, which is an agreement between the assesee firm and an artist Sh. Sardul Sikander wherein the singer has been signed/engaged by the firm for purchase of rights to his album and as per terms of agreement, the total consideration ₹ 36,00,000/- was fixed as per below mentioned schedule. On 07.11.2006 2,00,000/- by cheuqe After 10 days, 5,00,000/- in cash. Remaining amount- to be paid in installments on receipt of cassettes. During the course of assessment proceedings, the assessee was asked to produce the books of account wherein it was found t .....

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..... in cash. Remaining amount to be paid in installments on receipt of cassettes. 11. Before us, it was submitted by the Ld. Counsel that re-assessment proceedings 147 of the Act have been initiated on dated 26.03.2015 against the singer who made the agreement with the assessee. Subsequently the said proceedings have been dropped by the Assessing Officer vide its order dated 29.03.2016. Office note is also appended in the said order passed u/s 147 r.w.s.148 of the Act which is relevant for adjudication of the instant issue. OFFICE NOTE This case was selected for scrutiny after issuing notice u/s 148 of I.T Act, 1961 for the A.Y. 2008-09, on the ground that the assessee has received an amount of ₹ 36,00,000/- from M/$ Speed Records in the period Nov.2006 to Nov.2007 for recording of albums as per the terms and conditions mentioned in the agreements. During the course of assessment proceedings it has been verified that the assessee has shown income of ₹ 2,00,000/- in his gross receipts which was received through cheque from M/s Speed Records, Jalandhar and TDS amounting to ₹ 20,600/- deducted on the payment of ₹ 2,00,000/- by the Speed Records, Jalandhar has been .....

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..... se of assessment proceedings clearly submitted that the singer could not provide his solo music to the assessee s company therefore, the assessee company did not pay the remaining amount to the said singer and there is nothing on record to suggest that the assessee has paid remaining amount to the singer in pursuance to the agreement. It is a fact that the case of the singer was reopened u/s 148 of the Act for the Asst. Year: 2008-09 on the ground that the assessee (singer) has received an amount of ₹ 36,00,000/- from M/s Speed Records (assessee herein) during the period from November, 2006 to November, 2007 for recording of album as per the terms and conditions mentioned in the agreement. In the said assessment proceedings, the assessing officer duly verified that the said singer has shown income of ₹ 2,00,000/- in his gross receipts, received through cheque from M/s. Speed Records, Jalandhar and TDS amounting to ₹ 20,600/- was deducted on the said payment by the Speed Records, Jalandhar, as claimed in his return of income. The Assessing Officer further verified that no other income of ₹ 34,00,000/- was received by the assessee (singer) during the Financial .....

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