2021 (5) TMI 204

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....the issue is that:- "the Ld. CIT(A) has erred in partially sustaining the addition made by the Ld. A.O. towards office rent and office maintenance charges." 3. The brief facts of the case are that the assessee is a Private Limited company engaged in the business of manufacturing and sale of Granite/Marble blocks etc., filed its return of income on 2911/2013. Thereafter, the case was taken up for scrutiny and the assessment was completed vide order dated 22/3/2016 wherein the Ld. A.O. made addition of Rs. 63,25,982/- being the disallowance of expenditure incurred towards rent of office premises and office maintenance charges. On appeal, the Ld. CIT(A) partially sustained the addition by estimating the disallowance @ 50% of the to....

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....I have carefully considered the assessment order and submissions of the appellant. It is the fact that the office premises was shared by 13 other sister concerns/group companies. Therefore, there is valid reason for the Assessing Officer to consider that the appellant company's certain expenditure to be disallowed. But considering the explanation filed by the appellant company and keeping in view that there is no specific proof to disallow expenses, the reasonable amount of 50% of rent and office maintenance to be allowed as genuine and 50% to be disallowed as not allowable. Therefore, the Assessing Officer is directed accordingly." 5. Before us, the Ld. AR reiterated the submissions made before the Learned Revenue Authorities and ar....