9911796707
TMI Blog2014 (1) TMI 331X X X X Extracts X X X X X X X X Extracts X X X X ..... se of the said receipts - the direction in the present form of the CIT-8, Mumbai is premature – thus, the issue is kept open for examination by the AO during the fresh assessment proceedings giving effect to the review order u/s 263 of the Act - In case, the AO is of the opinion that these receipts have to be brought to the tax under the head ‘profits and gains from business or profession’, the allowable expenses of business nature are required to be allowed as claimed by the assessee – Decided partly in favour of Assessee. - ITA No.3493/M/2009 - - - Dated:- 5-6-2013 - I P Bansal And D Karunakara Rao, JJ For the Appellants : Shri Yogesh A. Thar, Mr. Harish G Buch and Mr. Harsh Kapadia For the Respondent : Shri A C Tejpal, CIT-DR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business and profession . 2. The CIT further failed to consider that the agreement submitted by the appellant was intended only for sharing of certain common facilities and not for renting of the premises in favour of the sister concern, there being specifically no tenancy rights created in its favour. 3. The appellant, therefore, prays that the order passed u/s 263 of the Act be struck down as null and void and assessment order of the AO be restored and it be held that on the facts and circumstances, that the amount offered by the appellant under the head income from business and profession should be accepted. Ground No.III 1. On the facts and circumstances of the case, the CIT erred in directing the AO t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Briefly stated relevant facts of the case are that the assessee is engaged in the business of marketing, selling and distribution of several consumer products including laundry and hair-care products. Assessee filed the return of income declaring the total income of Rs. 17.05 lacs. As a result of the scrutiny of the Return u/s 143(3) of the Act, the assessed income was determined at Rs. 66,00,96,491/-. On perusal of the assessment records, CIT noticed that the assessee was entered into an agreement dated 28.8.2003 w.e.f 01.04.2001 with an affiliated company named Procter Gamble Hygiene and Healthcare Ltd (PGHH) for sharing common expenses. CIT is of the opinion that the assessee rented out its place to the sister concern PGHH in lieu of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Counsel for the assessee explained the above facts and argued stating that the AO applied his mind in the original assessment proceedings to the contents of the impugned agreement dated 28.8.2003 w.e.f 1.4.2001. Further, Ld Counsel also brought our attention to the correspondence during the assessment proceedings u/s 143(3) of the Act, the letters dated 30.10.2009, which are placed in the paper book at pages 53 to 62, evidences the furnishing of the relevant papers before the AO during the assessment proceedings. Further, referring to the contents of page 51, which is Annexure-1, the said agreement dated 28.3.2003, Ld Counsel mentioned that the said Annexure contains the details of the services charges / compensation / user charges and oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nging these receipts to tax causing loss to the Revenue. Therefore, the order of the AO is erroneous and prejudicial to the interest of the Revenue. Reacting to the Ld Counsel s submissions, Ld DR mentioned that the contents of para 3.1 of the impugned order does not contain detailed analysis as to the nature of these receipts and allowability of the business expenses which is consequential to the conclusions on the proper head of income. Considering the fact that the issue relating to the validity of jurisdiction u/s 263 of the Act is not pressed. Further, Ld DR mentioned that he will not have any objection if the same is remanded to the files of the CIT with regard to the manner in the direction and for keeping this issue open for the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
