2021 (11) TMI 76

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.... PER K. NARASIMHA CHARY, J.M. Aggrieved by the order dated 10.03.2017 passed by the Commissioner of Income Tax (Appeals)-13, New Delhi ("Ld. CIT(A)") in the cases of Tulip Star Hotel Ltd. ("the assessee") for the assessment year 2012-13, Revenue preferred this appeal. 2. Brief facts of the case are that the assessee is a company and was engaged in the business of owning and managing the hotels ....

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....inuous existence for running the day-today affairs of the company. According to the assessee, same includes expenses like salary, payment towards statutory funds, travelling and conveyance, communication, professional fee, vehicles etc. Learned Assessing Officer, however, did not agree with the submissions of the assessee and disallowed the entire expenses of Rs. 3,64,03,451/- debited to the profi....

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....aid to the collaborators for expenses on services/premises which are clearly covered under the ambit of TDS provisions and that the assessee did not form any partnership firm with any of the collaborators and accordingly, payments made to them/revenue shared with them cannot be treated as share of profits in the absence of partnership firm. Learned DR places reliance on the orders of the authoriti....

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.... to keep the status of the company, the assessee had to incur expenses in the shape of salary of few key personnel, payments made towards statutory funds, communications, professional fees etc. 7. In these circumstance, ld. CIT(A) while following the decision of Hon'ble jurisdictional High Court in the case of Integrated Technology Ltd. (supra) and also order of coordinate Bench of this Tribunal ....