TaxTMI 
TaxTMI 
2023 (6) TMI 1538
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....1961 (hereinafter referred to as 'the Act') dated 22.12.2016 by the ld. Assessing Officer, Special Range-2, New Delhi (hereinafter referred to as 'ld. AO'). 2. Ground No.1 raised by the assessee is challenging the disallowance made on account of club membership fees in the sum of Rs.2,06,508/- on the ground that they are personal in nature and not meant for the purpose of business. 3. We have heard the rival submissions and perused the material available on record. The assessee is engaged in the business of interior fit-outs in accordance with the customer specifications. The operations of the company involve multiple activities ranging from providing furniture fit out, air-conditioning, fire-fighting equipments, plumbing, electric fi....
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....the representatives of the assessee company were using the said club for entertaining the customers (present and prospective) which, in our considered opinion, is certainly meant for the purpose of business and to be construed as an expenditure incurred as a measure of commercial expediency. In this regard, the Hon'ble Supreme Court had already decided this issue in favour of the assessee in the case of CIT vs. United Glass Manufacturing Company Ltd., reported in 28 taxmann.com 429. Similar view was also expressed by the Hon'ble Jurisdictional High Court in the case of CIT vs. Samtel Color Ltd., reported in 326 ITR 425 (Del). Respectfully following the same, we direct the ld. AO to delete the disallowance made on account of club membership ....
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....purchases u/s 69C of the Act in the sum of Rs. 53,02,819/- in the assessment on the ground that the assessee had failed to prove the genuineness of the transactions. 8. Before the ld. CIT(A), the assessee was directed to file copy of confirmation from the vendor, registration certificate from the vendor, VAT returns and VAT assessment orders of the assessee. The assessee filed registration certificate of vendor, copy of PAN and ITR of vendor, VAT returns filed online with Government of Tamil Nadu showing input-output and input tax credit. From the perusal of the said return, the ld. CIT(A) concluded that the VAT return showed purchases from Plyzone only to the tune of Rs. 7,48,635/- and, hence, he granted relief to the assessee only to t....
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.... provisions of section 69C of the Act, the prerequisite is that the expenditure has been genuinely incurred and only the source of such expenditure is not satisfactorily explained by the assessee. Hence, it can be safely concluded that the lower authorities grossly erred in invoking the provisions of section 69C of the Act. Accordingly, ground No.2 is allowed. 10. The ground No.3 raised by the assessee is challenging the addition made of Rs.27,98,256/- in respect of amounts deposited on account of voluntary compliance under Service Tax Act (VCES). 11. We have heard the rival submissions and perused the material available on record. It is not in dispute that the assessee had declared income under VCES inclusive of service tax. It is no....