TMI Blog2019 (9) TMI 460X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 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 passed a cryptic one line order dropping proceedings u/s 147/148 without in any manner confirming that Sr. Sardul Sikander (singer) was never paid any money by him. However, as it reflects from the note of the said assessment order wherein the Assessing Officer while dropping the proceedings specifically noted about receiving of the part payment of ₹ 2,00,000/- only during the assessment year relevant to the instant case - the agreement in question was never materialized fully and consideration amount was not paid in full, due to the reason that the said singer did not record the solo music album which resulted into verbal cancellation of the agreement in question, hence, the addition made and sustained by the authority below is liable to be deleted, therefore we do not have any hesitation to delete the same. - ITA Nos.449 & 450(Asr)/2017 - - - Dated:- 3-9-2019 - Sh. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licity 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 Sardool Sikander, pursuant to an agreement, rejecting the assessee s contention that the same had been cancelled. 3.1 That when the above amount, in the hands of the recipient, was not found taxable by the latter s AO, even after reopening his case u/s. 148, the ld.CIT(A) was not justified in still taking a contrary view, to confirm this addition. 4. That the ld. CIT(A) was unreasonable in sustaining the addition of ₹ 1,06,000/- made by disallowance of expenses, on wholly erroneous grounds. 5. That the orders of the authorities below, to the extent disp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 that only two payments in cheques one of ₹ 2,00,000/- on 07.11.2006 and second of ₹ 2,00,000/- in 2007 have been entered and the remaining amount has not been reflected in the book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upposed to record duet cassettes with co-singer Amar Nuri and the second one solo cassette by himself and the assessee during the course 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. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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