TaxTMI 
TaxTMI 
2018 (11) TMI 547
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....on made by the learned AO on account of incentive of Rs. 5882789/- and hospitality services expenses of Rs. 4169331/- were deleted. 02. The brief facts of the case shows that Assessee Respondent is a company engaged in the business of adventure tourism and other sports related activities. It filed return of income on 30/11/2013 declaring total loss of Rs. 96.64 crores. The assessment under section 143 (3) of The Income Tax Act [The Act] was passed on 29/3/2016 wherein the expenses on account of incentive expenses were disallowed of Rs. 5882789 and further allowance on account of hospitality services of Rs. 1.66 crores was restricted up to 75 % and balance 25% thereof amounting to Rs. 4169331/- was treated as excessive and disallowed. Asses....
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....ng the examination of documents found in survey the above issue emerged that assessee has paid incentive expenses. He further read out paragraph number three of the order of the learned assessing officer. He stated that assessee respondent has only filed names of certain players/staff/coaches and amount against their name as incentive paid and even the name of recipient has not been mentioned. He further stated that assessee only submitted details of agreement etc as sample basis. He therefore submitted that in absence of complete details submitted, the above expenditure cannot be allowed and the learned Commissioner Appeals has erred in allowing the claim on the same set of facts, which were produced before the assessing officer. 05. The ....
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....ein which justify that the above payment has been made for the purpose of the business. He also noted that the tax has been also deducted thereon. He also perused copies of the journal vouchers submitted before the learned AO based on which the various payments have been made. He also looked into the contract with respect to IPL for different employees and support staff engaged in organization and conduct of the above events with respect to the various expenditure. He held that there is no reason or justification for the disallowance made by the learned assessing officer. He further noted that assessee has produced before the AO books of accounts, bills, and vouchers during proceedings. The above findings of the learned commissioner appeals....
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....ores amounting to Rs. 4169331 as excessive and added to the income of the Assessee. 08. The assessee respondent challenged the same before the learned CIT - A who deleted the disallowance holding that this disallowance of 25% on ad hoc basis is merely on surmises and conjectures without any basis. He has also held that the learned assessing officer has not given any reason that how such expenditure cannot be considered as genuine and not excessive considering the net loss of Rs. 96.65 crores. He further held that assessee has submitted the complete details of such expenditure. The learned assessing officer aggrieved with the order has preferred an appeal before us. 09. The learned senior departmental representative reiterated the argument....