TaxTMI 
TaxTMI 
2020 (12) TMI 544
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....2), Bengaluru (AO) has erred in passing the asst. order in the manner passed by him. and the learned Commissioner of Income tax, Bengaluru - 5 [CIT(A)] has erred in sustaining the additions made by the learned assessing officer. The order passed by the CIT(A) is bad in law and liable to be quashed. 2. The learned CIT(A) has erred in sustaining the addition of Rs. 46,38,000/- being Sponsorship and Promotional income which was reduced from marketing cost in the Statement of Profit or loss under Note No. 24 - Other Expenses. On facts and circumstances of the case and law applicable, the impugned addition of Rs. 46,38, 000/ - should be deleted in entirety. Addition in respect of Reimbursement of security charges received amoun....
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....in the return of income. Levy of Interest under section 234B and 234D 6. The learned CIT(A) has erred in confirming the levy of interest under section 234B and 234D of the IT Act, 1961. On facts and circumstances of the case and law applicable, interest under section 234B and 234D is not leviable. The appellant denies its liability to pay interest under section 234B and 234D. Prayer 7. In view of the above and other grounds to be adduced at the time of hearing, the appellant prays that the order passed by the learned Commissioner of Income Tax (Appeals) - 5, Bengaluru to the extent prejudicial be quashed or in the alternative. (i) The addition of Rs. 46,38,0001- made for sponsorship and promotion....
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....sum of Rs. 35,85,414/- to P&L account, received as security charges, reimbursed from M/s.Brigade (holding company). Ld.AO, thus disallowed sum of Rs. 35,85,414/- as said amount escaped assessment. 5. Ld.AO further noticed from 26AS reconciliation that, assessee did not credit Rs. 4,71,90,356/- received as HV AC charges to P&L account. Assessee submitted before Ld.AO that, the said charges were charged to the tenants and reduced from respective expenses and therefore not shown as part of revenue. Ld.AO observed that assessee has not specifically mentioned in its reply, what were the respective expenses charged to the tenants and neither furnished any documentary evidences to prove its claim of reducing from respective expenses. Ld.AO thus....
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....tion, sum of Rs. 46,38,000/- was received from sponsors and advertisers for marketing and other events. Ld.AR drew our attention to page 32 of paper book, being statement of P&L account. In P&L account, sum of Rs. 39,915,786 was debited under the category 'Other expenses'. The breakup of 'other expenses' is at page 48 is in Note 24. Marketing cost at page 48 is Rs. 29,127,363. Ld.AR referring to page 119 of paper book submitted that, breakup of Marketing cost reveals sum of Rs. 48,39,860/- stands reduced from marketing income, and at net marketing cost of Rs. 29,127,363/- was arrived at, that appears in Note 24 at page 48 forming part of 'Other expenses'. 10.2 He thus submitted that, Marketing income has been considered under the head ma....
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....irect expenses' in Note 21 at page 32. The Ld.AR submitted that, breakup of 'Direct expenses' is at page 48, wherein, sum of Rs. 83,417,076 is been shown as total Operating Cost. Ld.AR submitted that security charges amounting to Rs. 2,54,81,85/- is net of Rs. 35, 85, 414/-. Referring to page 154-157 of paper book, Ld.AR submitted that, security charges received from parties forms part of sum of Rs. 45,12,061/-, that is credited in Ledger, under the head 'security charges'. 11.1 He thus submitted that, Security charges income has been considered under the head operating cost and net of expenses is debited to P&L account under the head 'Direct expenses'. 11.2 On the contrary, Ld.Sr.DR submitted that, all these clarifications were no....
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....r book, Ld.AR submitted that, Ledger account is maintained by assessee for HVAC/Power charges received. He submitted that, at page 260, net of reimbursement received towards HVAC/power charges have been calculated as Rs. 3,40,99,538/- that is debited to 'power and fuel' in Note 21 under the head, 'Direct Expense'. 12.2 He thus submitted that, reimbursement charges received has been considered under the head 'Marketing Fuel' and net of expenses is debited to P&L account under the head 'Direct Expenses'. 12.3 On the contrary, Ld.Sr.DR submitted that, all these clarifications were not filed before Ld.AO and therefore the same may be remanded to Ld.AO for verification. He placed reliance on orders passed by authorities below. 12.4 W....