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TMI Blog2022 (12) TMI 946X X X X Extracts X X X X X X X X Extracts X X X X ..... oss of Rs..2,36,07,873/-. The case was selected for scrutiny and during the course of assessment proceedings, the Assessing Officer noticed that assessee has written off an amount of Rs..15,46,88,000/- towards remake rights of "Lage Raho Munna Bhai" which was filmed as "'Shankar dada Zindabad" in Telugu which was released on 27.7.2007. After verification of the information submitted by the assessee, the Assessing Officer found that assessee has not deducted tax from the said payment of Royalty under section 194J of the Income Tax Act, 1961 ["Act" in short]. The assessment under section 143(3) of the Act was accordingly completed by making addition of Rs..15,46,88,000/- by invoking the provisions of Sec.40(a)(ia) of the Act. 3. The asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erring to the grounds of appeal, the ld. DR has submitted that the ld. CIT(A) has erred in deleting the disallowance made by the Assessing Officer under section 40(a)(ia) of the Act without considering th fact that even through the expenditure is amortised under Rule 9A of the Income Tax Rules, disallowance under section 40(a)(ia) of the Act has to be made. 6. None appeared on behalf of the assessee or filed any adjournment petition. The appeal was initially fixed for hearing on 02.03.2022 and adjourned on various occasion since none appeared on behalf of the assessee. When the appeal was finally taken up for hearing on 12.12.2022 also, none appeared on behalf of the assessee. Hence, we proceed to decide the appeal on merits after hearing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not warranted. Hence, I am of the considered view that the disallowance of Rs.15,46,88,000/- made by the AO U/s.40(a)(ia) of the Act is erroneous and accordingly direct the AO to delete the same. Therefore, the grounds of the appellant firm are allowed."
8. We have gone through the above order passed by the ld. CIT(A). Without considering the issue properly, the ld. CIT(A) has deleted the addition made by the Assessing Officer. Thus, the order passed by the ld. CIT(A) has to be reversed. Accordingly, we reverse the order passed by the ld. CIT(A) and allow the appeal filed by the Revenue.
9. In the result, the appeal filed by the Revenue is allowed.
Order pronounced on 21st December, 2022 at Chennai. X X X X Extracts X X X X X X X X Extracts X X X X
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