MAHADESWARA MOVIES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Bangalore Bench, has referred the following question for the opinion of this court :

(2.) THE assessee is a firm dealing in distribution of films. For the assessment year 1969-70, a return was filed declaring an income of Rs. 24,760. A statement was also filed along with the return disclosing, net profit as per the profit and loss account at Rs. 43,156 and after adding up certain amounts as inadmissible, the profit was shown at Rs. 46,667. Out of this a sum of Rs. 21,907 was deducted as amortisation as per separate statement. THE separate statement specified five pictures and mentioned amounts claimable as amortisation on each of the films and the aggregate was Rs. 21,907.

(3.) THE assessee preferred an appeal in this behalf to the Tribunal. THE Tribunal was also of the opinion that there was suo motu disclosure by the assessee auditors of the mistake and the difference in the income was substantial and, therefore, the mistake cannot said to be inadvertent or unintentional. THE Tribunal was of the opinion that the plea of the assessee cannot be said to be bona fide and in any event it would amount to gross neglect.