2016 (4) TMI 703

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....in law, the Ld. CIT(A) erred in holding that for calculating the eligible income u/s 80RR, the indirect expenses relatable to the assessee's foreign income be calculated on the number of days spent by the assessee abroad instead of in the same proportion which the foreign turnover has with the total turnover of the assessee as done by the AO. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in directing the AO to delete the addition on account of 'on money' paid in respect of acquiring tenancy rights of heritage bungalow, which was an exclusive property, the payment of which was made through undisclosed sources." 3. The issue raised in the first ground by the revenue is against the CIT(A) hol....

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....ng the year was Rs. 2,30,87,618/- and the total expenses as charged to the income and expenditure account were Rs. 19,16,537/- resulting in the net surplus during the year of Rs. 2,11,71,081/-. The AO worked out the proportionate expenses relating to foreign travel at Rs. 11,25,686/- as not being allowable in calculating of deduction u/s 80RR of the Act and disallowed and added 75% thereof to the income of the assessee i.e Rs. 8,44,265/-. The detailed calculation of the said workings were given by the AO on page 30 para 34 of the assessment order. 5.1. On appeal before the CIT(A) by the assessee , the CIT(A) allowed the appeal by following the appeal order for the AY 1995-96 and 1996-97 and directed the AO to calculate the disallowance b....

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....income. In AY 1995-96, number of days spend by the assessee abroad was 50 days and 25% of the expenses was held to be attributable to earning the income from aborad. In the present assessment year, the assessee has spent 6 days abroad. In the circumstances, we are of the view that 7% of the expenses can reasonably said to be attributable to earning of income outside India. The Assessing Officer is directed to compute deduction u/s 80RR accordingly. The appeal of the revenue is dismissed with the aforesaid directions." We, therefore, respectfully following the order of the coordinate bench of Mumbai, are of the view that 15% of the expenses are reasonable and be attributed to earning foreign income from outside India. The AO is directed t....

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....e Tax Department and the AO did not bring any materials or evidence on records to substantiate his action and addition made without any materials on records and was on based upon suspicion. Besides no incremating materials were seized during the course of search to corrobaorate of the action of AO and both documents agreement to sell and tenancy agreement pertained to other years and not the year under consideration. 6.2. The ld DR relied on the order of AO by submitting that the assessee paid on money to acquire interest in the property of perpetual nature and the AO had made the additions rightly and prayed that order of CIT(A) be set aside by upholding the order of AO. Per Contra Ld AR for the assessee argued that the date of the tena....