TaxTMI 
TaxTMI 
2020 (8) TMI 591
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....ce they are being disposed of by this common order. 2. In both the years, the assessee is aggrieved by the decision of Ld CIT(A) in confirming the disallowances made by the AO out of expenses claimed by the assessee. 3. Both the appeals are barred by limitation. The assessee has filed petition dated 13.7.2017 seeking condonation of delay. Having regard to submissions made therein, we condone the delay and admit the appeals. 4. The facts relating to the case are discussed in brief. During the years under consideration, the assessee has admitted income from sub-letting of properties taken on rent. The assessee declared its income under the head Income from Business on the plea that it is exploiting the commercial property by furnishi....
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....ussing anything in the assessment order, i.e., he did not give any reasoning as to why he has restricted the claim of administrative expenses. 6. The assessee challenged the above said action of the AO by filing appeal before Ld CIT(A). We have noticed earlier that the Ld CIT(A) had passed a common order for AY 2011-12 and 2012-13. The first appellate authority has initially observed that the disallowance of Rs. 1.00 crore was made for non-furnishing of details relating to Administrative expenses. However, later he has observed that the AO did not make any disallowance of Rs. 1.00 crore. It appears that the Ld CIT(A) has referred to the financial statements and assessment order relating to AY 2012-13 instead of the documents pertaining t....
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....estricting the amount of administrative expenses to Rs. 4.77 crores as against the claim of Rs. 5.77 crores. The assessee has furnished Annual Report and Schedule H of the Annual report contains the break-up details of the administrative expenses. Hence it is not a case of non-furnishing of details of by the assessee as observed by Ld CIT(A), since the Annual report was very much available before the assessing officer. The Ld A.R also submitted that the assessing office did not given any opportunity to the assessee in this regard. 10. The proceedings before the assessing officer is quasi-judicial proceedings and hence, while acting in their quasi-judicial capacity, the income tax authorities have to adhere to the principles of natural ju....
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....s restricting the claim of administrative expenses to Rs. 4.77 crores as against the claim of Rs. 5.77 crores. Accordingly, we are of the view that the there is no reason to reduce the claim of administrative expenses by Rs. 1.00 crore. Accordingly, we direct the AO to allow the administrative expenses fully as claimed by the assessee at Rs. 5.77 crores. 13. We shall now take up the appeal filed for AY 2012-13. We heard the parties and perused the record. In this year also, as in the earlier year, the AO computed the income of the assessee under the head Income from other sources as under:- Gross receipts as per P & L a/c 16,56,62,733 Less:- Allowable Expenditure 1. Rent Pa....
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....on the principle of natural justice, the action of the assessing officer cannot be upheld. Accordingly, we direct the AO to allow deduction of Rs. 31,76,042/- relating to pantry and stationery purchase. 16. The next issue relates to the disallowance made out of Building maintenance expenses. The AO noticed that the assessee has claimed a sum of Rs. 45,57,237/- under the head Building maintenance Services. The above said expense was grouped under the head "Administrative expenses". According to AO, the assessee did not produce proper break-up of the asset owned by it and expenses related to building. Hence the AO disallowed 40% of the above said claim. The Ld CIT(A) also confirmed the same. 17. We heard the parties on this issue and pe....
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.....e., 10% of Rs. 45,57,237/- and the same would take care of deficiencies, if any in the claim. We order accordingly. The order passed by Ld CIT(A) on this issue stands modified accordingly. 18. The next issue relates to the disallowance of Rs. 7.00 lakhs out of miscellaneous expenses. The claim of miscellaneous expenses was also grouped under the head Administrative expenses. We notice that the assessee has claimed a sum of Rs. 6.98 crores as Administrative expenses. The AO has disallowed a sum of Rs. 7.00 lakhs by observing that the assessee has not furnished the details of miscellaneous expenses. We notice that the AO has made this disallowance without properly analysing the financial statements furnished by the assessee. We notice fro....