TaxTMI 
TaxTMI 
2010 (1) TMI 921
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....other sports events and also produced television serials. It filed its return of income on 28-11-2003 declaring a total income of Rs. 10,34,18,550. Return was processed under section 143(1) on 12-4-2001. Later on, the Assessing Officer completed the assessment under section 143(3), inter alia, making additions based on order under section 92CA(3) of the Income-tax Act as per the order of the Additional Commissioner of Income-tax, Transfer Pricing-II, Mumbai, disallowance of expenditure incurred on web site development, ad hoc disallowance of expenditure claimed, etc., and arrived at a total income of Rs. 11,73,21,299 aggrieved, the assessee carried the matter in appeal. The first appellate authority granted part relief. Further aggrieved, t....
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....disallowance of expenditure of Rs. 1,92,27,929 incurred on various heads from 50 per cent to 25 per cent only. It is submitted that the disallowance may be reduced to 10 per cent. (8) It is prayed that the addition of Rs. 3,13,043 under section 92F and Rs. 17,44,335 under section 35D may be deleted and the disallowance of expenditure under different heads of expenses may further be reduced from 25 per cent to 10 per cent. 3. Shri S.C. Tiwari, learned counsel for the assessee, submitted that ground Nos. 1 to 5 are against the adjustment made in respect of arm's length price on a transaction with an associated enterprise. He filed paper book running into 110 pages and drew the attention of the Bench to the order of the Tra....
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....it is a capital expenditure, section 35D comes into play. 3.2 On ground No. 7, he submitted that the entire expenditure incurred by the assessee was documented and was audited by the statutory Auditors. He took this Bench to pages 1 to 87 of the paper book and drew the attention of the Bench to the nature of each of the expenditure therein, the entries passed in the books of account, the evidences available with the assessee, to prove this expenditure. Thus, he submits that it is not a case of the assessee not having produced any expenditure and disallowance at the rate of 25 per cent is not only excessive but also unreasonable. He pointed out that in the type of business in which the assessee is engaged, the evidence that can be ....
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....t the claim is allowable under section 37 can be made for the first time before the Tribunal and that it supported by the judgment of Hon'ble Supreme Court in the case of National Thermal Power Co. Ltd. v. CIT [1998] 229 ITR 383. 6. Rival contentions heard. On a careful consideration of the facts and circumstances of the case and a perusal of the papers on record and the orders of the authorities below as well as the case laws cited, we hold as follows. 7. As per the adjustment made under the Transfer Price provisions, we find that section 92C(1) reads as follows:- "92C (1) The arm's length price in relation to an international transaction shall be determined by any of the following methods, being the most appr....
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....red on proposed public issue, we are of the considered opinion that the assessee can make an alternative claim under section 37, as it is a legal claim. The Hon'ble Supreme Court in the case of National ThermalPower Co. Ltd. (supra) and the case of Jute Corpn. of India Ltd. v. CIT [1991] 187 ITR 688 has held that when the facts are on record, a legal claim can always be made by the assessee in appellate proceedings. As the undisputed fact is that there is no necessity for investigating the facts, the legal ground of the claim being allowable under section 37 is admissible. 10. We now consider the issue on merits. The assessee in this case had incurred expenditure of Rs. 87,21,675 towards initial public offer of shares. The assesse....
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....has not got any enduring benefit, we uphold the contention of the assessee and hold that the expenditure is allowable under section 37. 12. In the result, we allow ground No. 6 of the assessee. 13. Coming to ground No. 7, we find that the assessee in his paper book, has submitted minute details of the expenditure incurred, statement of accounts, copy of invoices, etc. The notes giving nature of expenditure and the purpose of each expenditure have also been given. All these details were before the Assessing Officer. The statutory Auditors have verified these expenditure. The ground on which the Assessing Officer disallowed 50 per cent of the claim was that the assessee has not complied with the requisition given by him. T....