Commissioner of Income Tax vs Praveena Film Circuit

Thanikkachalam, J.—In this tax case petition, the Department requested this court to direct the Tribunal to refer the following questions of

law, said to arise out of the Tribunal for the opinion of this court, u/s 256(2) of the Income Tax Act, 1961 :

(1) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law and had valid materials to hold,

that the assessee had received only a sum of Rs. 7.5 lakhs for the sale of the film, ''Dhavani Kanavugal''?

(2) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the letter of Shri

Panchu Arunachalam of Gayathri Combines to Shri Shanmugham indicated the figure 15 only as number of prints and not the price is an evidence

within the scope of sections 137 and 138 of the Evidence Act?

(3) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the factum of

receipt of Rs. 15 lakhs towards sale price of the film ''Dhavani Kanavugal'' has not been conclusively proved by the Department, to resort to the

addition of Rs. 7.5 lakhs?

In so far as question No. 1 is concerned, it relates to the consideration received for the sale of feature film and in so far as question No. 2 is

concerned, it relates to a letter written by one Panchu Arunachalam of Gayathri Combines to one Shanmugham. In so far as question No. 3 is

concerned, it relates to the factum of receipt of Rs. 15 lakhs towards sale price. All these questions are based upon the findings given on an

appraisal of facts arising in this case. Therefore, no question of law arises out of the order of the Tribunal as framed and suggested by the

Department. Accordingly, the tax case petition is dismissed.