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TMI Blog2019 (1) TMI 1585X X X X Extracts X X X X X X X X Extracts X X X X ..... e for the usage of the premises as guest house. Denial of the expenditure by the authorities below was not merely on the ground that the address of the guest house was not mentioned in the correspondence, but, there was no concrete evidence for the usage of the premises as guest house. Each assessment is distinct and we have to adjudicate the issue purely based on the facts of the case in hand even though the assessee has not filed copy of the order of authorities below having allowed the guest house expenditure in the earlier assessment years. We are inclined to concur with the conclusion as drawn by the ld. CIT(A), who has considered each and every aspect of the issue before arriving at the conclusion drawn by him when no contrary materia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. 3. On being aggrieved, the assessee is in appeal before the Tribunal. By reiterating the submissions as made before the ld. CIT(A) and filing copy of some e-mails, the ld. Counsel for the assessee has argued that the guest house has been used by the company to house company's guests and also for hosting office parties, conferences, meetings and training session. It was further submitted that the assessee has incurred various expenses to upkeep and maintain the guest house garden area, tennis court, swimming pool and to the interior in the house only for the usage as guest house and therefore, the ld. CIT(A) went in wrong to confirm the addition. It was also submitted that the guest house expenditure were allowed in the earlier assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the personnel has stated that the property belongs to the director's family and the directors visits the place with their family members occasionally. Accordingly, the Assessing Officer confronted the assessee with these facts and asked the assessee to show how the rent and other maintenance expenses can be regarded as allowable expenditures. The assessee submitted that there was no escapement of tax on account of the claim by the assessee as the rental income has been offered to tax by Mr. P. Hariraj, the owner of the property. Other than taking this argument, the assessee failed to produce any proof or other documentation to show that the property is used for assessee's business. The assessee could not produce any guest house r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny. All these emails talk about a trip to India, but none of them refer to the guest house in particular. Some of the emails talk about booking and cancellation of accommodation in India. Some of them also refer to some guest house. However, the ld. CIT(A) observed that in nowhere the specific premises in respect of which the expenses are claimed have been referred to, even once. Since, there is no evidence that any of the foreign clients/guests stayed in the said premises, the disallowance made by the Assessing Officer was upheld by the ld. CIT(A). 6. We have also perused the additional paper book consisting of copy of the emails. All these emails talk about a trip to India, but none of them refer to the guest house in particular. Even b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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