2017 (9) TMI 1156

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....0-11 the assessee organized and conducted the men's Hockey World Cup, 2010 and for that purpose created an AOP. On 13.10.2010 the assessee filed the return of income declaring an income of Rs. 15,07,970/-. The total receipts were shown at Rs. 8,38,46,493/- as against the expenditure of Rs. 10,46,70,522/- resulting in a net loss of Rs. 2,08,24,030/-. However, after adjusting the grant of Rs. 2,23,32,000/- received from OCCWG, 2010 and FIH, the assessee had shown the income of Rs. 15,07,970/-. During the scrutiny, AO made an addition on several counts and reached the taxable income of the assessee at Rs. 5,30,04,790/-. 3. In appeal the Ld. CIT (A) deleted the addition of Rs. 5,50,000/- on account of the income received from M/s Sail, a sum....

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.... 6. On the facts and in the circumstances of the case impugned order passed by the Ld. CIT (A) is perverse both in facts and law. 7. On the facts and in the circumstances of the case whether the Ld. CIT (A) has erred in admitting additional evidence in violation of Rule 46A of the Income Tax Rules, 1961. 8. The appellant craves leave to add, alter or amend any of the ground of appeal before or during the course of hearing of the appeal." 4. Ground nos. 6 & 8 are general in nature and do not require any special adjudication. In so far as the addition of Rs. 5,50,000/- is concerned, vide paragraph no. 5 of the assessment order AO observed that the assessee had claimed credit of TDS of Rs. 11,000/- in the books of account....

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....the assessee had accounted for commission of Rs. 1,17,97,206/-, whereas the assessee has paid commission of sponsorship Rs. 1,26,06,751/- to M/s Commune Market & Events Pvt. Ltd. sponsorship in its books of account, and deducted TDS only on Rs. 1,17,97,206/- as against 1,26,06,751/-, as such, AO added Rs. 8,09,545/- to the income of the assessee. So also AO further held that during the year a sum of Rs. 4,17,63,525/- was credited in the account of FIH by the assessee but no TDS was deducted as such this amount of Rs. 4,17,63,525/- was also added. 7. On this aspect, it is the observation of the Ld. CIT (A) that in respect of 8,09,545/-, the said amount was paid to M/s Commune Market & Events Pvt. Ltd. directly by M/s FIH on behalf of the ....

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....nd M/s FIH. M/s FIH made the payment of Rs. 8,09,545/- directly to M/s Commune Market & Events Pvt. Ltd. outside India and for that matter M/s FIH incurred so much of expenditure which the assessee reimbursed to them. In the circumstances, we find it difficult to agree with the Ld. DR that these payments partake the nature of income in the hands of M/s FIH and consequently, we hold that the assessee was not obliged to deduct TDS on the same. We, therefore, uphold the findings of the Ld. CIT (A) to delete the addition of these two amounts u/s 40(a)(ia) of the Act. Hence, the ground no. 2 is dismissed. 8. Now turning to ground no. 3, the AO made these additions on the ground that the assessee had not furnished the confirmations in respect ....