TaxTMI 
TaxTMI 
2021 (1) TMI 200
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....ed on 13 Feb, 2014 declaring total income of Rs. 2,77,98,355/-. The case was subject to scrutiny assessment. The notice u/s. 143(2) of the Act was issued on 1st Sep, 2014. The assessee is engaged in the business of trading in non-ferrous metals during the year under consideration. The assessment u/s. 143(3) of the Act was finalized on 11th March, 2016 and total income was assessed at Rs. 2,89,38,360/-. The ld. counsel has contested two issues in grounds of appeal pertaining to disallowance of rent expenses of Rs. 8,80,000/- of premise taken on rent at Mumbai and disallowance of Rs. 10,000/- as unaccounted expenses towards freight on purchase of machine from Surendranagar. The relevant facts pertaining to the aforesaid issues are discussed a....
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....d page no. 41 of the paper book pertained to nature of license on leave and license basis taken by the assessee company for the purpose of using by the directors of the company. The ld. counsel also submitted that frequent stay of directors of the assessee company in a hotel was found to be a costly option hence assessee took a residential premises on rental basis in Mumbai for its directors out of commercial expediency. The ld. counsel has also placed reliance on the decision of Jurisdictional High Court of Gujarat in the case of Sayajit Iron & Engg. Co. vs. CIT-253 ITR 749 (Guj). The ld. counsel also submitted that the similar rent expenses incurred by the assessee in subsequent year i.e. assessment year 2014-15 and 2015-16 were duly allo....
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.... book and observe that it is categorically mentioned that nature of leave and license was for the purpose of using for all the directors of the company and it was not taken for personal living purpose of any particular director. It is also observed that after deletion of section 37(3) w.e.f. 01-04-1998 guest house expenses are allowable under the act. Looking to the revenue from operation of the assessee company to the amount of Rs. 1,33,38,36,680/- for assessment year 2012-13, the impugned expenses of Rs. 8,80,000/- was only 0.05% of the total revenue from operation and there was increased in the revenue from operation from Rs. 1,33,38,36,680/- for assessment year 2012-13 to Rs. 1,76,28,64,861/- for assessment year 2013-14 which demonstrat....
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....Assessing Officer has made lump sum disallowance of Rs. 10,000/- on presumption basis without considering the fact that assessee has used its own tempo for the purpose of transportation of the purchased machinery. On the other hand, the ld. Departmental Representative has supported the order of lower authorities. 10. Heard both the sides and perused the material on record. During the course of assessment , the Assessing Officer noticed that the assessee had purchased machinery for Rs. 2,69,387/- from from Mistry Laxman Kadva Machines Pvt. Ltd., Sundranagar and no freight for transportation of the said machinery had been accounted for by the assessee. The Assessing Officer had not accepted the submission of the assessee that it had used its....