2017 (12) TMI 1732

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....f by this consolidated order for the sake of convenience.  ITA No. 1271/MUM/2013 Assessment Year: 2008-09 2. The 1st ground raised in this appeal by the assessee is against the order of the Ld. CIT(A) confirming the disallowance of Rs. 8,42,189/- of EDP expenses considering the same as capital expenditure.  2.1 During the course of assessment proceedings, the assessee submitted before the AO that it has debited Rs. 8,42,189/- as EDP expenses and included it in 'Miscellaneous Expenses'. The AO following the judgment of the Hon'ble Rajasthan High Court in the case of CIT vs. Arawali Constructions (P) Ltd. 259 ITR 30 (Raj) disallowed the said EDP expenses of Rs. 8,42,189/-.  2.2 In appeal, the Ld. CIT(A) agreed with the ....

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.... with the said party and also could not explain that the same was incurred for business purpose. 3.2 In appeal, the Ld. CIT(A) upheld the addition of Rs. 1,03,16,614/- made by the AO. He further found that out of total expenditure of Rs. 32,28,07,483/-, the amount of Rs. 10,47,17,975/- is expenditure incurred more than Rs. 10,00,000/- on each item. He held the same as capital expenditure and added back to the taxable income. 3.3 Before us, the Ld. counsel of the assessee submits that the Ld. CIT(A) has ignored the fact that the agreement as referred to by the AO in the assessment order was never asked for to be produced and the said disallowance has been made without asking for any further details/explanation in the course of assessment....

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....lso as held by the Ld. CIT(A), the assessee failed to prove that the said expenditure was incurred wholly and exclusively for business purposes.  4.3 Before us, the Ld. counsel the assessee submits that the Ld. CIT(A) has ignored the fact that the said disallowance is made without asking for any further details/explanation in the course of assessment.   On the other hand, the Ld. DR supports the order passed by the Ld. CIT(A).  4.4 We have heard the rival submissions and perused the relevant materials on record. We are of the considered view that whether the expenditure incurred by the assessee for travelling and conveyance is wholly and exclusively for the business purpose or not has not been examined either by th....