2018 (5) TMI 1637

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....sthan Bhawan, Mumbai. The same is allowable expenditure and addition of Rs. 1,00,00,000/- deserves to be deleted." 2. During the year under consideration the assessee contributed a sum of Rs. 1 crore to Rajasthan Bhawan Mumbai at Mumbai and the same was debited to the P & L account. The AO was of the view that the said amount of Rs. 1 crore being contribution of the Rajasthan Bhawan Mumbai is not covered u/s 37(1) of the Act and accordingly, proposed to disallowance the said amount. The assessee submitted that the contribution was made towards the construction of Rajasthan Bhawan, Mumbai against which the employees of the assessee will be entitled to stay in the premises at nominal and concessional charges. Therefore, the assessee claimed....

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..../JP/2014, 93/JP/2015, 207/JP/2015, 94/JP/2015, 208/JP2015 vide order dated 23.02.2018. He has further submitted that as per the order dated 24.10.2017 the Government of Rajasthan has allowed the assessee a rebate of 50% for stay in the Rajasthan Bhawan Mumbai at Mumbai. He has filed a copy of the said order dated 24.10.2017. 5. We have considered the rival submissions as well as the relevant material on record. At the outset we note of the Coordinate Benches of this Tribunal in case of M/s Rajasthan State Industrial Development & Investment Corp. Ltd. vs. DCIT (supra) has considered and decided an identical issue in para 36 as under:- "36. We have considered the rival submissions as well as relevant material on record. At the outset we n....

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....de on permanent basis to the assessee. Therefore, the provisions og guest house at Delhi was in the normal course of business and expenditure incidental to it is of revenue nature. The ld. CIT(A) has rightly observed further that the AO has not appreciated the facts properly that total expenditure of Rs. 40,00,000/- was deferred in five equal instalments and only Rs. 8,00,000/- was debited in A.Y. 2003-04. Thus, the entire addition of Rs. 40,00,000/- need to be deleted and the claim of depreciation allowed by the AO at Rs. 2,00,000/- is also to be added back in the computation of income as per the first appellate order. We concur with the view of Ld. CIT(A) which also finds support from the decisions of Hon'ble Delhi High Court in jthe case....

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.... or not. The onus is on the assessee company to establish the said fact. The ld AR has submitted that the assessee company has written to the Government of Rajasthan to provide accommodation facilities in the Rajasthan Bhawan to its officers on their visit to Mumbai, however, there is nothing on record to support the said contention. We are accordingly setting aside the matter to the file of the AO to examine the said contention and the examine the matter a fresh. In the result, the ground of the assessee is allowed for statistical purposes." Thus, the Tribunal by considering the accommodation facility in the guest house as relevant factor set aside the issue to the record of the AO to examine the accommodation facility available to the ....