2016 (10) TMI 424

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.... private clients, filed its return of income on 31. 10. 2004, declaring total Loss at Rs. 1, 75, 28, 794/-. The AO completed the assessment u/s. 143(3) on 22. 12. 2006, determining its loss at Rs. 98. 74 lakhs. 2. First Ground of appeal is about deleting the disallowance of Income tax on expatriate salary, amounting to Rs. 43. 24 lakhs. During the assessment proceedings, the AO found that the assessee had borne Income tax of Rs. 49, 39, 525/- in respect of expatriate's salary, that on its own it had disallowed Rs. 6. 15 lakhs u/s. 40(a)(v) of the Act, that disallowance was made by it for non monetary perquisites. The AO directed the assessee to file explanation with regard to the remaining amount. After considering the submission of the as....

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....nt, that it had suo motu made a disallowance for non-monetary perquisites, that WJ had offered the disputed amounts in his return of income. Considering the fact that WJ had paid the tax on the amount in question, we are of the opinion that the order of the FAA needs no interference whatsoever, upholding his order Ground No. 1 is decided against the AO. 3. Second Ground of appeal is with regard to deletion of club membership fee amounting to Rs. 3. 24 lakhs. During the assessment proceedings, it was found that the amount was paid towards membership fee of Willingdon Sports Club and Breach Candy Swimming Bath Trust by the assesse. The AO held that the membership fee paid towards the club by the assessee company was capital in nature as it w....

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....atio the assessee had taken advisory fee at Rs. 59. 99 lakhs, that as per audit report advisory fee was Rs. 86. 36 lakhs. He asked the assessee to show cause the basis of taking advisory fee at Rs. 59. 99 lakhs and to explain as to why two different TP methods had been used for different AE. s in respect of advisory fee. Vide its letter dt. 7. 12. 2006 the assessee computed the mean as under :- Comparable Companies Adjusted OP/TC Geojit Financial Services Ltd. 57. 39% Integrated Enterprises (India) Ltd. 21. 16% Keynote Corporate Services Ltd. -2. 61% S K P Securities Ltd. 69. 57% VCK Capital Market Services Ltd. -25. 40% Mean 24. 02% 4. 1. After considering the submission of the assessee the AO held that out of the five compa....