TaxTMI 
TaxTMI 
2017 (10) TMI 1251
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....or the relevant assessment year, declaring the total income of Rs. 7,08,798/-. Since, it was seen from the notes to accounts that the assessee had two projects at hand and it had added back WIP of Rs. 78.84 lakhs and 3.21 crores respectively to the said projects, the AO asked the assessee to explain as to why the expenses have been debited to the profit and loss account despite the fact that no business activities were carried out during the relevant year. In response thereof the authorized representative of the assessee made a written submissions stating that the assessee company has carried on the business during the year under consideration. Since, the projects are still in progress, all the expenses incurred on the project have been capitalized in the capital work in progress. It was further stated that out of the total expenses of Rs. 12,98,670/- debited, the assessee company has itself disallowed expenses to the extent of Rs. 7,62,015/- in the computation of income. Out of the remaining expenses share transfer expenses of Rs. 1,19,670/- and audit fees of Rs. 32,500/- were inadvertently remained to be disallowed while filing the return of income. The AO did not accept the cont....
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....er has failed to take into consideration the exempt income earned u/s 10 of the Income Tax Act, 1961 and thereby made the addition to the total income without understanding the nature of income for the year under consideration. It is therefore prayed that such exempt income should be reduced from the total income and treat it as tax free income for the year under consideration." 5. This case was fixed for hearing on 04.01.2017, however, the hearing was adjourned to 14.02.2017 at the request of the assessee. On 14.02.2017 the assessee again short adjournment. Accordingly, the case was fixed for 21.02.2017. On 21.02.2017 none appeared on behalf of the assessee. The case was adjourned to 23.02.2017. On 23.02.2017 again the assessee did not appear. Fresh notice to the assessee was issued for 05.04.2017. On 05.04.2017 again neither the representative of assessee appeared nor any application for adjournment was received on behalf of the assessee. We noticed that the assessee has been given sufficient opportunity to pursue its case and despite that the assessee failed to appear on three successive dates. We are satisfied that the assessee is not interested in pursuing its appeal. Accordi....
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.... assessment year 2011-12 declaring the total income of Rs. 30,87,552/-. On the basis of information received from ADIT (Inv.) (AIU), New Delhi to the effect that enquiry was conducted in respect of chartered flights given on rent by M/s Span Air Pvt. Ltd. to the assessee company and it came to the notice that assessee company had availed services of non scheduled flights during the year under consideration and the assessee company had used these chartered flights for the personal purposes. Hence, in order to verify the business expediency of using non scheduled flights, the assessee was asked to file the details of transactions entered with M/s Span Air Pvt. Ltd. In response thereof the assessee company made written submissions. The assessee in support of its claim filed copy of ledger account, chartered invoice and ledger copy of travelling expenses. Notice u/s 143 (6) was issued to M/s Span Air India Ltd. calling for details such as nature and quantum of services provided, mode of payment through which payment has been proceeds, copy of agreement entered with the assessee company and copy of return of income along with schedules. In response thereof M/s Span Air Pvt. Ltd. filed c....
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....or the purpose of business, the AO has rightly disallowed the said amount and revised value of Hydro Project. As regards, second issue the Ld. DR submitted that since the assessee has failed to furnish substantial evidence that the travelling expenses had been incurred exclusively for business and further its direct nexus with the development of projects or nature of technological assistance provided to companies abroad, the AO has rightly disallowed 15% of the total expenses of Rs. 66,47,036/- and added to the income of the assessee. The assessee has failed to furnish any evidence in this regard even during the appellate proceedings. Hence, the order passed by the Ld. CIT (A) does not warrant any interference. 5. We have perused the material placed on record including the orders passed by the authorities below. We noticed that during the assessment proceedings, the AO asked the assessee to file the details of transactions done with M/s Span Air Pvt. Ltd. the assessee made written submissions. The relevant portion of the reply reads as under:- "assessee company has made payments to the said concern against its bills for hiring of charter planes during the year. In this regard, w....
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....rposes before the authorities below and since no material was brought before us to substantiate its claim. We do not find merit in the appeal of the assessee. We therefore, uphold the findings of the Ld. CIT (A) and dismissed this ground of appeal of the assessee. 8. So far as the second ground is concerned, we noticed that during the assessment proceedings as well as the appellate proceedings, the assessee could not satisfy the authorities that the Directors visited abroad for the purpose of exploring the new technology and technological assistance for their ongoing power plant set up. The Ld. CIT (A) has confirmed the action of the AO holding as under:- "6.3 I have considered the stand of the AO as well as submission filed by the appellant. It is seen that the AO has debited Rs. 66,47,036 under the heading conveyance, tour and travel. Incidentally, on verification it is found that this expense of Rs. 66,47,036/- is in addition to the amount of Rs. 53,60,400/- which has been capitalized by the appellant. It means that the Directors and employee of the appellant company have spent Rs. 1,20,436/- has been spent out of companies fund. For which the management of the appellant comp....