RAMANAND SAGAR Vs. DEPUTY COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS appeal under section 260-A of the Income-tax Act ("act" for short) is at the instance of the assessee Shri Ramanand Sagar of Natraj Studio, producer of a T. V. serial known as "ramayan" relating to the assessment year 1989-90 during which nearly 52 episodes of one hour slot each were produced by the appellant. By consent of parties the appeal was taken up for final hearing at the stage of admission. THE FACTS

(2.) THE appellant is an individual assessee assessed to tax under the Act. He filed his return under section 139 of the Act for the assessment year 1989-90. The original assessment under section 143 (3) of the Act was completed on 27th March, 1991 on the income of Rs. 67,08,050/- as against the income of Rs. 43,67,830/- returned by the appellant. The assessing officer made certain additions by disallowing certain expenditures.

(3.) THE appellant claimed to have received Rs. 2 crore during the assessment year 1989-90 from the aforesaid T. V. serial "ramayan". The appellant had claimed expenses in the sum of Rs. 18,31,055/- on account of equipment hire charge paid to five different parties. As regards payments made to three parties was allowed as the assessing officer was satisfied with the explanation furnished by the assessee. The assessing officer not being satisfied made a disallowance of Rs. 7,00,400/-; i. e. in respect of payments made to M/s. New Diamond, Mumbai in the sum of Rs. 6,00,000/- and to M/s. Video Flash amounting to Rs. 1,00,400/ -.