P V SADASIVA CINEMA PVT LTD,MALAPPURAM vs. THE ACIT CENTRAL CIRCLE, THRISSUR

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ITA 625/COCH/2023Status: DisposedITAT Cochin23 October 2024AY 2014-15Bench: Shri Satbeer Singh Godara (Judicial Member), Shri Amarjit Singh (Accountant Member)4 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the issue required factual verification by the Assessing Officer. Therefore, the matter was remitted back to the Assessing Officer for fresh adjudication after considering the assessee's claim regarding entertainment tax.

What were the facts?

The assessee's appeals concerned additions made to theatre collections for assessment years 2013-14 to 2015-16. The assessee argued that entertainment tax paid at 15% of collections was not properly considered, leading to an inflated addition.

What were the issues?

Whether the entertainment tax paid by the assessee was correctly considered in determining the addition to theatre collections. The need for factual verification of the assessee's claim regarding entertainment tax.

Which sections of the Income-tax Act were involved?

Section 144,Section 153C,Section 250,Section 254(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

Before: Shri Satbeer Singh Godara & Shri Amarjit Singh

For Respondent: Dr. S. Pandian, CIT-DR
Hearing: 22.08.2024Pronounced: 23.10.2024

O R D E R Per Bench These assessee’s three appeals arise against orders of the CIT(A)-3, Kochi’s proceedings u/s. 250 of the Income Tax Act, 1961 (the Act) as under : - DIN & Order No. Date No. 1 624/Coch/2023 2013-14 ITBA/APL/S/250/2023- 28.06.2023 24/1054037809(1) 2 625/Coch/2023 2014-15 ITBA/APL/S/250/2023- 28.06.2023 24/1054037974(1) 3 626/Coch/2023 2015-16 ITBA/APL/S/250/2023- 28.06.2023 24/1054038023(1)

Cases called twice. None appears at assessee’s behest. We accordingly proceed exparte against the assessee.

1.

“The appellant is M/s.P.V. Sadasiva Cinema (P) Ltd and in respect of AY 2013- 14, the Assistant Commissioner of Income Tax, Central Circle, Thrissur has completed the assessment as per the order u/s. 144 rws 153C of the Act dt 27.12.2016 fixing a total income of Rs.95,61,910/-

2.

The estimated collection of the two theatres is determined at Rs.1,39,39,326/- and reduced the income disclosed Rs.91,88,810/- and addition of Rs.47,50,516/- is determined by the Assessing Officer, which is modified by the Commissioner of Income Tax (Appeals) at Rs.52,41,239/-

3.

The appellant paid Entertainment. Tax at 15% of the total collection to Tanur Municipality. which is not considered by the Assessing Officer and the Commissioner of Income Tax (Appeals). The payment of Entertainment Tax @ 15%, during the FY 2012-13, is as under :

PVS Cinema - Rs.5,30,014 PVS Paradise – Rs. 9,06,838 ---------------- Rs.14,36,852/- ----------------- The total collection on the basis of the amount of the Entertainment Tax paid is: Rs.14,36,852/15% x 100% = Rs.95,79,020/- only.

4. Hence, the appellant may request that the addition of Rs.47,50,516/- made by the Assessing Officer and on appeal modified by the Commissioner of Income Tax (Appeals) at Rs.52,41,239/- is to be limited to Rs.3,90,210/-.

5.

In view of the above facts, the addition to theatre collection adopted by the Commissioner of Income Tax (Appeals) at Rs.52,41,239/- is not justified and may be modified accordingly to Rs.3,90,210/-.”

3. Learned CIT-DR could hardly dispute that the assessee’s sole substantive ground extracted herein, requires a factual verification by the learned field authorities than over detailed adjudication u/sec.254(1) of the Act since it’s claim of re- computation of entertainment tax @ 15% already discussed to the tune of Rs.95,79,020/- (supra) resulting in balance sum of Rs.3,90,210/- in the foregoing terms. we thus deem it appropriate in larger interest of justice to remit the issue back to the Assessing Officer for his afresh factual verification and adjudication, preferably within three effective opportunities of hearing, subject to the rider that it shall be the taxpayer’s onus and responsibility only to plead and prove all the relevant facts in consequential proceedings. Ordered accordingly.

4.

This assessee’s “lead “ appeal ITA.No.624/Coch./2023 is allowed for statistical purposes in above terms.

626/Coch./2023 since raising identical sole substantive grounds. Ordered accordingly.

6.

These assessee’s instant three appeals ITA.Nos.624 to 626/Coch./2023 are allowed for statistical purposes in above terms. A copy of this common order be placed in the respective case files.

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