RAJNIKANTH Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee is a film actor. He reported, for the asst. yr. 1979-80, his estimated taxable income from his profession at Rs. 1, 50, 000 and showed a gross income of Rs. 3, 51, 101. He did not maintain any books of accounts. THE ITO relying upon two agreements dt. 8th March, 1978, found during a search in the assessee's residence on 3rd April, 1981, held that the assessee had reported only 28 per cent of his total receipts, as the two agreements found in his residence showed that the remuneration payable to him by the film production company, namely, Senthil Kumar Production was Rs. 35, 000 under one agreement and Rs. 1, 25, 000 under the other agreement. THE correspondence between the assessee and the film producers were also examined and they showed that the two agreements related to one and the same picture and the remuneration payable to the assessee for acting the picture was Rs. 1, 25, 000 while agreement showing a figure of Rs. 35, 000 was meant only for the income-tax purpose.

(2.) ON appeal, the CIT (A) did not agree with the ITO. He estimated the assessee's income by doubling the gross receipts reported by him and thereafter allowed one fourth of that amount as expenditure and arrived at a figure of Rs. 5, 26, 652 as his net income from the profession. That finding of the CIT (A) has been affirmed by the Tribunal.