TaxTMI 
TaxTMI 
TaxTMI 
2022 (11) TMI 1031
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....mmissioner of Income Tax, Circle-3(1)(2), Mumbai (hereinafter referred to as ld. AO). 2. The first issue to be decided in this appeal is with regard to disallowance u/s.14A of the Act r.w.Rule 8D(2) of the Rules. 3. We have heard rival submissions and perused the materials available on record. We find that the assessee company is engaged in the business of providing management consultancy services for activities in connection with procurement and sourcing of natural / mineral resources and in the trading business of bullion more specifically gold. The assessee had further explored its objective to carryout farming activities in order to diversify its business operations. The return of income for the A.Y.2014-15 was filed by the assessee o....
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....tments which had actually yielded exempt income to the assessee during the year under consideration and recompute the disallowance accordingly. The workings for the same are given by the assessee in page 43 of the paper book. The ld. AO is directed to verify the same and re-compute the disallowance. Accordingly, the ground Nos. 1 & 2 raised by the assessee are allowed for statistical purposes. 4. The ground No.3 raised by the assessee is challenging the disallowance of foreign travel expenses. 4.1. We have heard rival submissions and perused the materials available on record. As stated supra, the assessee is engaged in the business of management consultancy services to find out suitable location, extraction and processing of natural miner....
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....hat extent. This categorically goes to prove that no expenditure pertaining to Mrs. Ragini Barfiwala has been debited in the books of the assessee company. Hence, there cannot be any personal element of expenditure debited in the assessee company's books. These details were duly furnished before the lower authorities which had been ignored by the lower authorities. Hence, we have no hesitation in directing the ld. AO to delete the disallowances made on account of foreign travel expenses of Rs.5,22,872/-. The ground No.3 raised by the assessee is allowed. 5. The ground No.4 raised by the assessee is challenging the adhoc disallowance sustained by the ld. CIT(A) at 5% as against 20% made by the ld. AO in respect of travelling expenses, sales....
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....r the purposes of guest house and hence, not incurred for business purpose of the assessee. We are unable to persuade ourselves to accept to this argument of the Revenue as the expenditures were incurred by the assessee in the guest house maintenance which are meant for usage of the assessee company employees and its Directors on their official visits. Obviously those persons who are staying in the said guest house on their official trip had to consume food, tea, coffee etc., for which purpose, the aforesaid groceries are very much required to be purchased and kept ready. Had these employees gone and stayed in a private hotel, the assessee company would have to incur the accommodation purpose together with the food bills thereon which would....
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....s Caterers for providing food in the conference meeting to the customers of the assessee who attended conference. These expenses are to be construed only as expenditure incurred in the normal course of business of the assessee company. We hold there cannot be any adhoc disallowance of the same without finding any defect in the books or in the bills and vouchers produced by the assessee before the lower authorities. The ld. AO is directed accordingly. 5.5. With regard to office maintenance charges, it is not in dispute that assessee owns 14th Floor, C Wing of Mittal Tower and operates its business from the said premises. Accordingly, the assessee is bound to make payment of society maintenance expenses to Mittal Tower Premises Co-operative ....