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TMI Blog2018 (4) TMI 188X X X X Extracts X X X X X X X X Extracts X X X X ..... well as appellate authorities in case relevant material is available on record. Thus the issue is remitted back to the file of ld. Assessing Officer for a fresh examination. The AO after giving due opportunity to the assessee would decide this issue in accordance with law. - I.T.A.No.2814/CHNY/2016 - - - Dated:- 2-4-2018 - SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S.JAYARAMAN, ACCOUNTANT MEMBER For The Appellant : Mr.Sriram Seshadri, C.A And Mr.Ashik Shah, C.A For The Respondent : Mr.Sailendra Mamidi, PCIT, D.R ORDER PER S.JAYARAMAN, ACCOUNTANT MEMBER: The assessee filed this appeal against the order of the Commissioner of Income-tax (Appeals)-3, Chennai in ITA No.81/2013- 14/CIT(A)-3, dated 29. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rious products of cars, whereas, the assessee s core business is providing services to the parent company. In the circumstances, Ld.CIT(A) observed that the arguments of the assessee-company are devoid of merits and confirmed the disallowance made by the ld. Assessing Officer. 2.2 In respect to CWIP expenses of ₹ 98,51,53,358/- written off as revenue expenditure, the Ld.CIT(A) held that the issue is not arising from the assessment order and hence, he does not see any scope to interfere on this issue and accordingly dismissed the ground. Aggrieved with the order of Ld.CIT(A), the assessee preferred this appeal before this Tribunal. 3. Before us, the ld.A.R invited our attention to Section-4 of Financial conditions in the Service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts to the international transactions. In view of that, the ld.A.R pleaded that the promotional expenses incurred were for the purpose of business as it was engaged in providing services to its parent company. 4. Per contra, the ld.D.R supported the order of the ld. Assessing Officer and the Ld.CIT(A). 5. We have considered the rival submissions and gone through the relevant materials available on record. The assessee had entered into a Service Agreement dated 12.06.2007 with M/s.Renault SAS (RSAS), France for providing services in the field of sourcing, design and engineering services. Subsequently, the parties mutually agreed to include the additional services within the scope of service agreement, which is extracted, supra. Thus, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rily suspend the construction of manufacturing plant. Subsequently, the management decided to completely suspend the plans of setting up a manufacturing facility on design and decided to set up a manufacturing facility by setting up a joint venture company and procure cars from such new joint venture for trading in India. In view of that, the management decided to write off the entire amount on CWIP to the statement of P L for the year ended on 31.03.2010. However, the amounts written off were inadvertently disallowed by the assessee in the computation of income under the normal provisions of the Act as well as under section 115JB of the Act. The assessee company realized the above mistake during the assessment proceedings and made a claim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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