TaxTMI 
TaxTMI 
2021 (8) TMI 647
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.... of assessment passed u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 30/03/2014 by the ld. Dy. Commissioner of Income Tax-10(1), Mumbai (hereinafter referred to as ld. AO). 2. The only issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in deleting the disallowance of expenses made u/s.37(1) of the Act in the facts and circumstances of the instant case. 3. None appeared on behalf of the assessee. We have heard ld. DR and perused the materials available on record. We find that assessee company is engaged in the business of analysis, investment, research, financial consultancy and providing related services and solutions and also trading in multi commodity exchange and in curre....
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....e assessee and disallowed the remaining 75% of the expenditure in the sum of Rs. 3,32,27,022/- after reducing the suomoto disallowance of expenses made by the assessee in the return of income. 3.1. Before the ld. CIT(A), the assessee reiterated the submissions by stating that the assessee company was incorporated in 2004 and is a subsidiary of Transmarket Group LLC-USA and that the assessee company was run on a 24 hour shift basis. Its' staff strength was 45 excluding 2 Directors. The assessee also gave break-up of expenditure of Rs. 10,66,45,068/- as under:- Loss from Commodity Futures : Rs. 1,46,29,741 Depreciation : Rs. 1,18,34,254 Rs. 2,64,63,995 Payment/provision for employee....
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....ty expenses 12,31,193 The entire office has a backup UPS The said expense not being directly relatable to the project was debited to profit and loss account 3E Payment to auditors 9,92,700 The said expenditure was incurred by the Appellant in relation to statutory audit carried for the subject year The said expense not being directly relatable to the project was debited to profit and loss account 3F Telephone/ Communication expenses 38,31,082 The company has multiple 20MEG leased line from Mumbai to London and 45MEG Internet Lines and similar ancillary infrastructure The said expense not being directly relatable to the project was debited to profit and loss account 3G Finance Costs 231,454 This incl....
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....CIT(A) had deleted the entire disallowance of expenditure on adhoc basis made by the ld. AO by giving a categorical finding that the ld. AO had not even whispered in the assessment order as to how a particular expenditure of the assessee is excessive and not incurred for the purpose of business u/s.37(1) of the Act. The ld.CIT(A) also observed that it is not the case of the ld. AO that the expenditure debited by the assessee are personal in nature. The ld. CIT(A) thereafter, relied on the decision of the Hon'ble Supreme Court in the case of J.J. Enterprises vs. CIT reported in 254 ITR 216 and proceeded to delete the adhoc disallowance made by the ld. AO. Before us none of the categorical findings recorded by the ld. CIT(A) had been controve....