when I try to delete from itunes, I can only delete from icloud but nothing goes in my trash

I get a message telling me that the item will be 'hidden from your iTunes in the cloud purchases' and asking me if I want to cancel or delete the item. When I click on 'delete the item' it disappears, but doesn't go into my trash. Can somebody please tell me in nice baby steps how to get rid of things I will never watch again? Thanks