IN INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI BEFORE SHRI G. MANJUNATHA, ACCOUNTANT MEMBER & SHRI RAM LAL NEGI, JUDICIAL MEMBER IT No.5828/Mum/2018 (Assessment Year :2012-13) M/s. Kapishek Films Private Vs. ITO-16(1)(2) Limited Aaykar Bhawan C/o. Mr. Surendra Verma Mumbai-400 020 th 902, 9 Floor Dev Prestige Bldg Wing, Vira Desai Road Amboli, Andheri(West) Mumbai-400 058 PAN/GIR No.AABCK9351N Appellant) .. Respondent) Assessee by Tanmay Phadke Revenue by R. Bhoopathi Date of Hearing 01/10/2019 Date of Pronouncement 01/10/2019 / O R D E R PER G.MANJUNATHA (A.M): This appeal filed by assessee is directed against order of Commissioner of Income Tax (Appeals) 4, Mumbai, dated 10/07/2018 and it pertains to Assessment Year 2012-13. 2. assessee has raised following grounds of appeal:- a. order passed by Ld.CIT(A) is contrary to law ad liable to be quashed and/or set aside. 2 ITA No.5828/Mum/2018 Kapishek Films Pvt.Ltd. b. Ld.CIT(A) ought to have allowed addition of Rs.2,50,000/- on account of receipt from Global Advertiser (Prop. Mr. Sanjiv Manmohan Gupta). c. Appellant craves leave to add/amend/alter above grounds and prays that present appeal be allowed. 3. brief facts of case are that assesee company is engaged in business of Films and Cinema Production, filed its return of income for AY 2012-13 on 27/09/2012, declaring total loss at Rs. 2,55,120/-. case was selected for scrutiny and assessment has been completed u/s 143(3) of I.T.Act, 1961 on 05/03/2015 and determined total income at Rs. 17,450/- by making additions towards amount received from M/s. Global Advertisers amounting to Rs. 2,50,000/- as per form 26AS, on ground that said receipt has not been disclosed in profit and loss account. Ld. AO had also made additions towards adhoc disallowance of 15% various expenditure. assessee carried mater in appeal before first appellate authority. Ld.CIT (A) for detailed reasons recorded in his appellate order partly allowed, appeal filed by assessee, where he had allowed relief in respect of Adhoc disallowance of certain expenditure. However, confirmed additions made by Ld. AO towards amount received from M/s Global Advertisers. Aggrieved by Ld.CIT(A) order, assesse is in appeal before us. 3 ITA No.5828/Mum/2018 Kapishek Films Pvt.Ltd. 4. We have heard both parties, perused material available on record and gone through orders of authorities below. factual matrix of impugned dispute are that during year under consideration, assessee has received sum of Rs. 2, 50,000/- from M/s. Global Advertisers, for sponsorship of Audio cassette release of future film produced. assessee has organized audio release programme at hotel Sun-n-Sand and incurred amount of Rs. 3,07,785/-. assesee has debited payment made to Sun-n-Sand Hotels Pvt.Ltd amounting to Rs. 3,07,785/- to audio relese expenses account and credited amount received from M/s. Global Advertisers amounting to Rs. 2,50,000/- and net balance of Rs. 57,785/- has been debited under head audio release expenses in profit and loss account. Ld. AO has made additions towards amount received M/s Global Advertisers, on ground that said receipt has not been included in profit and loss account. Ld. CIT(A) confirmed additions made by Ld. AO on similar grounds. assesse has filed paper book, which contains financial statements filed for year under consideration. We find that assessee has credited amount received from Global Advertisers to audio release expenses and debited amount paid to M/s Sun-n-Sand Hotel Pvt.Ltd towards organising audio release function to said account, and difference 4 ITA No.5828/Mum/2018 Kapishek Films Pvt.Ltd. of Rs. 57,785/- has been debited into profit and loss account under head cast of production and shown under current assets and loans and advances in balance sheet. All these evidences are part of paper book filed by assessee. assesse claims that said evidences has been filed before Ld. AO, as well as Ld.CIT(A). Therefore, we are of considered view that when, assessee has filed sufficient evidences to prove that amount received from M/s. Global Advertisers has been included into profit and loss account against corresponding expenditure incurred for said purpose, there is no reasons for Ld. AO, as well as Ld.CIT(A) to make additions towards amount received from M/s. Global Advertisers, towards sponsorship. Therefore, we are of considered view that Ld. AO was erred in making additions towards amount received towards sponsorship. Ld.CIT(A) without appreciating facts simply confirmed additions made by Ld. AO. Hence, we reverse findings of Ld.CIT(A) and direct AO to delete additions made towards amount received from Global Advertisers. 5. In result, appeal filed by assessee is allowed. 5 ITA No.5828/Mum/2018 Kapishek Films Pvt.Ltd. Order pronounced in open court on this 01 /10/2019 Sd/- Sd/- (RAM LAL NEGI) (G. MANJUNATHA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai; Dated 01/10/2019 Thirumalesh Sr.PS Copy of Order forwarded to : 1. Appellant 2. Respondent. 3. CIT(A), Mumbai. 4. CIT DR, ITAT, Mumbai 5. BY ORDER, 6. Guard file. True Copy (Asstt. Registrar) ITAT, Mumbai Kapishek Films Private Limited v. ITO-16(1)(2), Mumbai