AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2023 (6) TMI 1393
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....n addition of INR 4,79,699 in the assessment order for the relevant assessment year on account of office and other expenses. 2.1 That on the facts and in the circumstances of the case, the CIT(A) grossly erred in confirming the aforesaid action of the assessing officer without. appreciating that the expenditure under consideration was incurred wholly and exclusively for the purposes of business 2.2 That on the facts and in the circumstances of the case, the CIT(A) grossly erred in confirming the aforesaid action of the assessing officer without appreciating that the assessing officer has not doubted the fact of actual incurrence of the aforesaid expenditure for the purposes of business. 2.3 That on the facts and in the circumstances of the case, the CIT(A) grossly erred in confirming the aforesaid action of the assessing officer without appreciating that the statutory/ tax auditors of the assessee have verified the incurrence of aforesaid expenditure and no adverse observations were made by them in this regard. 2.4 That on the facts and in the circumstances of the case, the CIT(A) grossly erred in confirming the aforesaid action of the assessing ....
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....aid action of the assessing officer on an incorrect basis that the land under consideration was sold by assessee to its holding company, viz., Ballarpur Industries Limited. 4.2 That on the facts and in the circumstances of the case, the CIT(A) grossly erred in confirming the aforesaid action of the assessing officer without appreciating that M/s Ballarpur Industries Limited is not the holding company of assessee, as has been accepted by the assessing officer as well in the assessment order for the relevant assessment year and the provisions of section 47(v) of the Income-tax Act, 1961 were not applicable in the present matter. 4.3 That on the facts and in the circumstances of the case, the CIT(A) grossly erred in confirming the aforesaid action of the assessing officer without appreciating that the transaction under consideration for transfer of land to Ballarpur Industries Limited was a genuine transaction, supported by evidences and documents. 4.4 That on the facts and in the circumstances of the case, the CIT(A) grossly erred in confirming the aforesaid action of the assessing officer without appreciating that the transaction under consideration for tr....
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....rtain in nature, therefore no upward adjustment us 115JB(2)(C) can be made in this regard, by ignoring the provisions contained in Explanation [1](c) to the section 115JB(2) which provides that amount set aside to provisions made for meeting liabilities, other than ascertained liabilities has to be increased for the purpose of computing book profit. Appeal of assessee ITA No. 1196/Del/2022 for AY 2004-05 4. Ground no. 1 of assessee is general in nature which does not require any specific adjudication. Apropos ground no. 2 the ld. counsel submitted that the CIT(A) grossly erred in confirming the action of the assessing officer in making an addition of INR 4,79,699 in the assessment order for the relevant assessment year on account of office and other expenses. Without appreciating that the expenditure under consideration was incurred wholly and exclusively for the purposes of business and the Assessing Officer has not doubted the fact of actual occurrence of aforesaid expenditure for the purpose of business and this fact was also verified by the statutory/tax auditor and no adverse observations have been made by them in this regard. The ld. counsel also submitted that the asse....
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.... that the land under consideration was sold by assessee to its holding company, viz., Ballarpur Industries Limited, without appreciating that M/s Ballarpur Industries Limited is not the holding company of assessee, as has been accepted by the assessing officer as well in the assessment order for the relevant assessment year and the provisions of section 47(v) of the Income-tax Act, 1961 were not applicable in the present matter. He also contended that the CIT(A) grossly erred in confirming the aforesaid action of the assessing officer without appreciating that the transaction under consideration for transfer of land to Ballarpur Industries Limited was a genuine transaction, supported by evidences and documents and the transaction under consideration for transfer of land to Ballarpur Industries Limited was not a sham/ colorable device. He vehemently pointed out that the the CIT(A) grossly erred in confirming the aforesaid action of the assessing officer without appreciating that no evidences were furnished by the assessing officer to hold that the transaction under consideration for transfer of land to Ballarpur Industries Limited was a sham/ colorable device. Therefore he submitted....
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....ssed the claim of assessee of long term capital loss by observing that the transfer of capital asset by appellant company to its parent/holding company (in which appellant company is 100% subsidiary of its parent company i.e. BILT) therefore in view of provision of 47(v) of the Act the transaction of transfer of land from subsidiary to holding company is not covered u/s. 45 of the Act. We are in complete agreement with the findings arrived by the ld. CIT(A) based on section 47(v) of the Act and when the transaction does not falls within ambit of section 45 of the Act then any claim of long term capital loss/profit cannot be held as allowable. Accordingly, we are unable to see any reason to interfere with the findings of ld. CIT(A) and thus, we uphold the same. Accordingly, ground no. 4 to 4.5 of assessee are dismissed. Revenue Appeal in ITA No. 1333/Del/2022 for AY 2004-05 11. Apropos ground no. 1 & 2 the ld. Senior DR, supporting the assessment order submitted that the Ld. CIT(A) has erred on facts and in law, by considering that exchange rate losses amounting to Rs. 16,06,000 was incidental to the nature of business of the assessee by not considering that the facts of the i....
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.... the same was rightly allowed. 15. On careful consideration of above, we note that the ld. CIT(A) after considering the agreement disallowed expenditure toward office & other expenses and consultation fee however he allowed the expenditures towards insurance charges and payment to the auditor which was not covered under the agreement and the same was the liability of assessee. On being asked by the bench the ld. Senior DR could not show us that how these payments are covered under the agreement and were to be incurred by the BILT. Therefore, we are unable to see any reason to interfere with the said findings of ld. CIT(A) and hence we uphold the same. Accordingly, ground no 3 of revenue is dismissed. 16. Apropos ground no. 4 & 5 the ld. Senior DR submitted that The Ld. CIT(A) has erred on facts and in law by deleting the disallowance of Rs. 11,16,14,6371- made u/s 14A by placing reliance on the judgment on the decision of Hon'ble Delhi High Court in the matter of Joint Investments Private Limited wherein the Hon'ble High Court ruled that the disallowance u/s 14A cannot exceed exempt income, by ignoring the CBDT circular no. 5/2014 dated 11.02.2014, which has been clar....