VADUGANATHAN TALKIES AND ORS. Vs. INCOME TAX OFFICER, NON-CORPORATE WARD 20(5)
LAWS(MAD)-2020-9-936
HIGH COURT OF MADRAS
Decided on September 22,2020

Vaduganathan Talkies And Ors. Appellant
VERSUS
Income Tax Officer, Non-Corporate Ward 20(5) Respondents

JUDGEMENT

T.S.SIVAGNANAM,J. - (1.) These appeals have been filed by the appellant/assessees under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as "the Act"?) challenging the common order dated 25.04.2019, made in I.T.A.No.3434/ Chny/2018, I.T.A.No.3433/Chny/2018 and I.T.A.No.3432/Chny/2018 on the file of the Income Tax Appellate Tribunal 'C' (SMC) Bench, Chennai (for brevity "the Tribunal"?) for the assessment years 2014-15, 2015-16 and 2014-15 respectively.
(2.) Before us, there are two assessees, viz., Vaduganathan Talkies, whose relevant assessment year is 2014-15 and Lena Talkies, whose assessment years are 2014-15 and 2015-16.
(3.) The assessees have raised the following substantial questions of law for consideration of this Court:- "1. Whether on the facts and circumstances of the case, the Tribunal was right in not looking into proviso to Section 40A(3) wherein no disallowance can be made u/s.40A(3) having regard to the nature and extent of banking facilities available, consideration of business expediency and other relevant factors? 2. Whether on the facts and circumstances of the case, the Tribunal was right in holding that Rule 6DD has not been satisfied, without looking into the legality that second proviso to Section 40A(3) is a substantive provision of the law and satisfaction of Rule 6DD will not affect the exemption from the rigor of Section 40A(3)? 3. Whether on the facts and circumstances of the case, the Tribunal was right in confirming the addition when the assessee had discharged its onus of proving the genuineness of the transactions and identity of the film producers/distributors? and 4. Whether on the facts and circumstances of the case, the Tribunal was right in rejecting the documents like copies of agreements and confirmation from film distributors and film producers filed at the time of hearing without restoring the matter to the lower authorities to check on the veracity of the documents filed?";


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