2017 (8) TMI 290

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....es was genuinely incurred by the assessee wholly and exclusively for purpose of its business and hence allowable as business expenditure ? b) Whether, on the facts and in the circumstances of the case and in law, the Hon'ble ITAT is justified in holding without any evidence, that the "Shared Service Costs" of Rs. 1.34 Crores paid by the Assessee to its Holding Company was reimbursement of actual expenses, when such expenses were actually estimated and allocated to the assesseecompany as has been held by CIT (A) ? c) Whether, on the facts and in the circumstances of the case and in law, the Hon'ble ITAT is justified in restoring the matter to the Assessing Officer with a direction to allow the "Shared Service Costs" of Rs. 1.34....

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....ng Company. Section 194(1) of the Act is attracted. 4 Mr.Mistri, the learned senior advocate for the respondent submits that even the Assessing Officer has not disputed about the entries with regard to the reimbursement of expenses made by the assessee to the Holding Company. However, the Assessing Officer went on the premise that the said expenses are much higher than the revenue income. The learned senior advocate submits that the Tribunal has rightly considered that the present year was the first year of its operation and naturally the expenses would be high and revenue less. The learned senior advocate further submits that the return shows negative income of Rs. 16,12,68,490/. Normally, the question of high expenditure with regard to....

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....ed to be paid by ASK Wealth Advisors to ASKIM for availing of these Financial and Investment Advisory Services, and Support services. 6 Reading the said clauses, it is manifest that it has been agreed by the assessee that the assessee reimburses the actual cost incurred to the Holding Company. The said clauses do not lead to any inference that the amount would be paid on estimation. 7 The Assessing Officer in its order has observed thus : "The submission of the assessee has been considered but found not to be acceptable. On perusal of the details filed it is observed that it is specially a service agreement between ASK Wealth Advisors Ltd. and its associate company. ASK Investment Holdings P. Ltd. for shared service costs towards a....