9911796707
TMI Blog2010 (5) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... on account of the expenditure allegedly incurred by the assessee on behalf of other companies alleged to have been in occupation of the building taken on lease by the assessee. Held that: The manner in which the Assessing Officer has come to the computation of Rs 1.5 crores and Rs 1 crore as being attributable to the foreign projects is not at all based on facts or any logic. But, at the same time, as pointed out above, it is undeniable that some part of the head office expenses are to be attributed to the foreign projects – matter remanded back – regarding second issue: we are of the view that the finding of the Tribunal that no evidence had been brought or found to show that the assessee had incurred any expenditure in relation to any o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20 lakhs relating to the Assessment Year 2004-05. The said amounts were computed being 20 per cent of the aforesaid expenditure attributable to the foreign projects. The said addition was made on account of the disallowance of the deduction under Section 80HHB to the aforesaid extent. 2. The second issue relates to the addition of Rs 10 lakhs made by the Assessing Officer on account of the expenditure allegedly incurred by the assessee on behalf of other companies alleged to have been in occupation of the building taken on lease by the assessee. The said addition was deleted by the Commissioner of Income Tax (Appeals) as well as by the Income Tax Appellate Tribunal. 3. Insofar as the first issue is concerned, the Assessing Officer was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ra, who appears on behalf of the respondent/assessee. However, it is also clear that the Assessing Officer has merely taken some ad hoc figure and attributed the same towards expenditure on foreign projects as a part of the head office expenses. The manner in which the Assessing Officer has come to the computation of Rs 1.5 crores and Rs 1 crore as being attributable to the foreign projects is not at all based on facts or any logic. But, at the same time, as pointed out above, it is undeniable that some part of the head office expenses are to be attributed to the foreign projects. It is for this reason that we are of the view that the Tribunal's order to this extent ought to be set aside and the matter be remanded to the Assessing Officer t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... else and it was run as a business centre and the assessee company was one of the occupants operating from the said premises on a lease arrangement. The assessee company also explained that the lease rent was paid by the assessee company for the area occupied by it. It was also explained that whenever any other company occupies any portion, out of the area taken by the assessee on lease, the assessee company recovers rental from such other company and that such recoveries are included under the head - "other income" -as per the Profit Loss Account of the Assessee company. However, assessee company also submitted that there are some other companies, other than those operating within the premises taken on lease by the assessee company, whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or found to show that the assessee has incurred any expenditure that relates to any other companies." 9. From the above extract, it is apparent that the Tribunal was of the view that the Assessing Officer has not brought on record any evidence to show that any portion of the premises, as occupied by the assessee, was being used by any other company or companies. This finding is clearly contrary to the record inasmuch as the assessee itself admitted in its reply to the questionnaire submitted by the Assessing Officer that in the portion taken on lease by the assessee company, certain other companies were also operating. Though, the assessee made it clear that such other companies were paying lease rentals to the assessee company for use o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
