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TMI Blog2016 (5) TMI 587X X X X Extracts X X X X X X X X Extracts X X X X ..... loss. In this view of the matter, the assessee had income from only two activities/sources, i.e. earns ‘income from house property’ given on rent and ‘interest income’. The authorities below have also observed that the assessee had already availed deduction of ₹ 26,96,445/- which covered all those expenses the assessee required for day to day maintenance of the assessee company, like statutory obligations of filing fees, audit, etc. The assessee has, in our view, failed to controvert the above factual findings by the authorities below. We find that the expenses which are allowable under its two income heads ‘income from house property’ and ‘income from other sources’, have already been allowed and we therefore, uphold the decision of the learned CIT(A) that no further expenses are to be allowed. - Decided against assessee - ITA No. 3481/Mum/2013 - - - Dated:- 11-5-2016 - Shri Jason P. Boaz, Accountant Member And Shri Sandeep Gosain, Judicial Member For the Applicant : Shri Milind Thakore For the Respondent : Shri A. Kumbhar ORDER Per Jason P. Boaz, A.M. This appeal by the assessee is directed against the order of the CIT(A)-6, Mumbai dated 11.03. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the deduction for expenses of ₹ 19,1 1,600 against the business income of the appellant. 5 The learned CIT(A) erred in not appreciating the fact that these expenses are in respect of day to day maintenance of the appellant and hence allowable as deduction against the business income. Ground 3: TDS Credit 6. The learned CIT(A) erred in not specifically directing the AO to grant the credit for balance TDS of ₹ 2 1,93,696 as claimed in the return of income. Ground 4: Interest under section 234C 7. The learned CIT(A) ought to have directed the AO to compute interest under section 234C i.e. Rs. Nil based on the returned income. Ground 5: Interest under section 244A 8. The learned CIT(A) erred in not specifically directing the AO to grant interest under section 244A upto the date on which the refund is granted. General 9. Each one of the above grounds of appeal is without prejudice to the other. 10. The appellant reserves the right to add, alter of amend to the grounds of appeal. 4. Ground No. 1 (1 to 3): Treatment of business income 4.1 In these grounds, the assessee contends that the learned CIT(A) erred in c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ork for the parent company, who reimbursed the salary paid to them. No remuneration was paid to the assessee for alleged professional services rendered by the assessee nor was there any agreement between the assessee and the parent company for provision of professional charges. It is contended that these findings of fact by the authorities have not been controverted by the assessee with any material evidence. In respect of the assessee s claim that no such disallowance was made either in the earlier or subsequent years by the Department and therefore no disallowance was called for in the year under consideration were irrelevant as in the earlier years the assessee was carrying on the business as a shipping agent and in the subsequent years there were agreements between the assessee and the parent company for provision of services at a fixed cost which was at cost plus a mark up thereon. The learned D.R. contended that the order of the learned CIT(A) on this issue ought to be upheld as the assessee s submission that it recovers professional fees on an estimate basis goes to prove that the entire arrangement has been made to claim expenses which are otherwise not allowable under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services to its parent company as claimed and that the entire arrangement between them was with a view to claim expenses which are not otherwise allowable under the head income from house property and interest income. We, therefore, uphold the impugned order of the ld CIT(A) disallowing the assessee s claim of business loss. Consequently, ground 1 (1 to 3) of the assessee s appeal are dismissed. 5. Ground No. 2 (4 5): Disallowance of Expenses - ₹ 19,11,600/- 5.1 In this ground, the assessee contends that the learned CIT(A) erred in upholding the AO s disallowance of expenses to ₹ 19,11,600/- against business income of the assessee which were in respect of day to day maintenance of the assessee. The learned A.R. for the assessee reiterated the submissions made before the authorities below vide letter dated 08.11.2013 and 17.12.2012 and the paper book (pages 1 to 84) which is certified as having been filed before the authorities below. It was submitted that the expenditure claimed was in respect of business activities and there was no claim of the same expenditure under the head income from house property. It was prayed that the assessee s claim for allowing thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard, we direct the AO to examine and verify the assessee s claim and to grant TDS credit, if warranted, in accordance with law. This ground No. 3 is treated as allowed for statistical purposes. 7. Ground No. 4: Interest under section 234C of the Act 7.1 In this ground the assessee denies itself liable to be charged interest under section 234C of the Act based on its returned income. The charging of interest is consequential and mandatory and the AO has no discretion in the matter. We, however, direct the AO to recompute the interest chargeable under section 234C of the Act, if any, while giving effect to this order. Consequently ground No. 4 is therefore treated as allowed for statistical purposes. 8. Ground No. 5: Interest under section 244A of the Act 8.1 In this ground, the assessee contends that the learned CIT(A) erred in not specifically directing the AO to grant interest under section 244A of the Act upto the date on which refund is granted. The AO is directed to examine the assessee s above claim in accordance with law while giving effect to this order. Consequently, ground No. 5 is treated as allowed for statistical purposes. 9. General (Ground 9 10) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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