2023 (1) TMI 1270

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....ustries Ltd. towards administrative expenses.  3. Briefly the facts are, the assessee, a resident corporate entity, is engaged in the business of processing and export of pickled gherkins, baby corns etc. For the assessment year under dispute, the assessee filed its return of income on 31.10.2002 declaring loss of Rs. 12,57,05,553/-. In course of assessment proceedings, the Assessing Officer noticed that in the year under consideration, the assessee had debited an amount of Rs. 75,37,408/- to the profit and loss account towards payment made to M/s. Ballarpur Industries Ltd. He further noticed, while computing the taxable income, the assessee added back the amount to the income. Whereas, in course of assessment proceeding, vide letter ....

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....ssing Officer in the earlier or future assessment years. 5. Learned Departmental Representative strongly relied upon the observations of the Assessing Officer and learned Commissioner (Appeals). 6. We have considered rival submissions and perused the materials on record. Though, it may be a fact that certain details were not furnished by the assessee in course of the assessment proceeding, however, it is evident, in course of proceeding before the first appellate authority and remand proceeding before the Assessing Officer, the assessee did furnish various details regarding the facilities/services availed from M/s. Ballarpur Industries Ltd. A copy of agreement was also furnished before the authority concerned. On perusal of the copy of ag....

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....as availed certain facilities and service from M/s. Ballarpur Industry Ltd., for which, payments have been made. From the history of such payments made, it is further evident that beginning from 2007-08, the expenditure claimed has been allowed in all assessment years, past and future, except, the impugned assessment year. It is relevant to observe, in assessment years 2007-08 and 2010-11, learned Commissioner (Appeals) has allowed such expenses. Thus, considering the overall facts and circumstances of the case, we are of the view that the assessee having incurred the expenses for its business, is entitled to claim deduction. Accordingly, we delete the disallowance. 7. In ground no. 2, the assessee has challenged disallowance of miscellane....

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....seen, the assessee in its letter dated 21st February, 2005 submitted before the Assessing Officer claiming the expenditure. Though, in the return of income the assessee had suo motu added back the expenditure to the income. From the said letter filed before the Assessing Officer it is observed that the expenses are incurred under various heads, such as, market development expenditure, professional fee, gardening and housekeeping charges, head office reimbursement, reimbursement of top managements, directors expenses, office maintenance, factory maintenance, security charges, wastages and disposals, computer maintenance, printing and stationary etc. However, no supporting evidence, even sample copies of vouchers and bills have been submitted....