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TMI Blog2015 (9) TMI 168X X X X Extracts X X X X X X X X Extracts X X X X ..... ied on the ground that room rent is debited on the gross amount which is inclusive of complimentary break fast and or meal. Now in this regard we find from the paper book submitted by the assessee that there is a guest complimentary ledger. This aspect has neither been explained by the assessee nor appreciated by the ld. CIT(A). The scheme of entry shown as above showed that it is not a simple matter as debiting guest complimentary on account of food and beverages and crediting room rent. It cannot be said that the ld. CIT(A) has properly understood the scheme of assessee's entry. Before us also except producing copy of the ledger account the ld. Counsel of the assessee could not explain in detail the impact of the entries in the aforesa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenses under the head Guest Complimentary and Guest Supplies by observing as under : As per the Profit Loss A/c. the assessee had debited ₹ 73,10,746/- on account of expenses on apartment and board. During the course of assessment proceedings the assessee has furnished details from wherein it is noticed that sum of ₹ 22,14,839/- was claimed on account of Guest Complimentary and further ₹ 8,03,909/- was claimed on account of Guest Supplies. The assessee was asked to furnish explanation in respect. However, no details/explanation have been furnished in this regard, and, hence, the aforesaid expenses of ₹ 30,18,748/- remained unexplained. In the absence of any detail or evidence the said amount of ₹ 30,1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt are credited in the accounts at gross rate with corresponding debit in Guest Complimentary on account of complimentary breakfast and one major meal. 05. The fact of Complimentary breakfast and one major meal is apparent from details submitted in the form of ledger print outs. Further more room rents being credited in the accounts on gross basis and reflected as such in the Profit and Loss Accounts has been offered for taxation. The gross room rent includes cost of complimentary breakfast and one major meal debited in the accounts as Guest Complimentary. Disallowance thereof in assessment epitomizes that income to such extent has sought to be taxed twice. Accordingly the disallowance of Guest Complimentary of ₹ 2214839 in assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourse of Remand Report proceedings, the assesee has only submitted ledgers. No inference can be drawn from ledger because the narration does not contain anything in detail. Narration of expenses is very general in nature. So, the undersigned is of the view that assessee failed to give detailed break up of expenses on 'apartment and board' of ₹ 30,18,748/- which was disallowed by the Assessing Officer. 3.2. Considering the above the ld. CIT(A) observed that guest complimentary were mainly in the nature of food and beverages and guest supplies relate to complimentary supply of sundry cosmetics. The ld. CIT(A) observed that during the appellate proceedings the AR of the assessee was required to produce evidence in support of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt is as under :- Particulars Debit Guest Complimentary 1,53,285.50 Business Promotion 55,119.33 Dr Staff Welfare 27,154.53 Dr F B Cost Adjustment 2,35,559.36 Cr AMOUNT ADJD AGST. COST OF MAP, BREAKFAST, COMPLIMENTARY AND EDM. 4.1. We note that this aspect has neither been explained by the assessee nor appreciated by the ld. CIT(A). The scheme of entry shown as above showed that it is not a simple matter as debiting guest complimentary on account of food and beverages and crediting room rent. It cannot be said that the ld. CIT(A) has p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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