2021 (12) TMI 1249

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....peal, the following grounds are raised by the assessee :- "1. Action of Commissioner of Income Tax (A) in upholding the addition made by Deputy Commission of Income Tax on account of Disallowance of Administrative Expenses of Rs. 48,48,892/- to the returned income is unjust, illegal arbitrary and against the facts and circumstances of the case. 2. Action of Commissioner of Income Tax (A) in upholding the addition made by Deputy Commission of Income Tax on account of Depreciation of Fixed Assets of Rs. 7,93,830/- to the returned income is unjust, illegal arbitrary and against the facts and circumstances of the case. 3. Facts in brief are that the assessee company has filed its return of income on 31.03.2015 declaring los....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... such a situation can be classified that there is a temporary lull. However, he held that only few expenses can be considered to be business expenditure in case of assessee that can be allowed and accordingly, he held that certain expenses, i.e. paying of statutory dues, legal & professional charges, audit fee and salary of some employees, and accordingly he held that part of the amount should be allowed. Accordingly, out of salary and wages expenditure claimed at Rs. 25,46,049/-, he confirmed the disallowance amounting to Rs. 23,46,049/- holding that Rs. 2,00,000/- is sufficient. Secondly, under the head legal professional charges amounting to Rs. 4,54,655/- and audit fee amounting to Rs. 1,12,360/-, he allowed in full. However, the balanc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed certain expenditure. Accordingly, the Tribunal allowed the expenditure after observing and holding as under :- "7. We have gone through the record in the light of the submissions on either side. As could be seen from the order of the learned CIT(A), the fixed assets of the assessee are the subject matter of litigation u/s 18 of the Land Acquisition Act and the assessee was due to receive a compensation amount of Rs. 460 crore with interest which would be the income of the assessee in the year that would be received. In this context, the maintenance of the establishment by the assessee has rightly accepted by the learned CIT(A) as an indication of the intention of the assessee to resume the business if the opportunity for it aris....