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TMI Blog2019 (6) TMI 1289X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed by CIT(A). - Decided against assessee Purchase of gold coins - allowable business expenses u/s 37(1) - HELD THAT:- Assessee has purchased gold coins to the tune of ₹ 4,16,333/- which it claimed to have given as gift for business purposes . The assessee although had given the list of the persons to whom gold coins were gifted but the nexus of gift of gold coin to business of the assessee could not be proved. The assessee could not prove that these expenses were incurred wholly exclusively for the purpose of business of assessee and that the assessee did infact generated business from the persons to whom gift of gold coins were given. The onus is on the assessee to prove that it satisfied mandate of Section 37(1) that these expenses were incurred wholly and exclusively for the purposes of the business of the assessee and these expenses were neither personal expenses nor capital expenses, which the assessee had failed to discharge in the instant case. - Decided against assessee. - I.T.A. No.364/Mum/2018 - - - Dated:- 29-5-2019 - Shri C.N Prasad, Judicial Member And Shri Ramit Kochar, Accountant Member For the Assessee : None ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted party. The assessee submitted that it has paid reimbursement amounts on the sale leads received in the ratio 90:10 out of the total expenditure incurred by related party. The AO observed that the assessee has failed to furnish details of customers who have brought the sale leads nor the assessee has produced the transactions with the customer list generated by the assessee. As per AO, it was also not brought on record as to how sales were improved with the sale leads generated by related party. It is also not brought on record as per AO whether these transactions with related parties were at arm s length and why income-tax was not deducted on these payments . The additions to the tune of ₹ 21,77,660/- were made by the AO u/s. 40A(2)(b) and added to the income of the assessee , vide assessment order dated 29.12.2016 passed u/s. 143(3) of the 1961 Act. 3.2 Aggrieved by an assessment framed by the AO u/s 143(3) vide assessment order dated 29.12.2016, the assessee filed first appeal with learned CIT(A) and submitted that it is getting sourcing lead of prospective clients from different vendors including related party . The written submissions were filed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been paid to the related party. Even during the appellate proceedings the submissions of the appellant is on generalities and not facts specific or details specific as was warranted by the AO during the assessment proceedings. Under the facts and circumstances of the case and discussion here in above, the conclusion reached by the AO is found to be justified and is accordingly upheld. This ground is accordingly dismissed. 3.4. Aggrieved by an appellate order dated 15.11.2017 passed by learned CIT(A), the assessee has filed an appeal before the tribunal. None appeared on behalf of the assessee. The assessee did not appeared before Bench on 28.01.2019 and the appeal was adjourned by Bench to 19.03.2019. When the appeal was called for hearing on 19.03.2019 before the Bench, the assessee did not appear even on 19.03.2019 before the Bench . The appeal was then heard by Bench on 19.03.2019 after hearing learned DR. The Ld. DR supported appellate order of Ld. CIT(A) and prayed that the appellate order passed by learned CIT(A) is well reasoned order which should be upheld. 3.5 We have considered contentions of learned DR and have perused the material on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment framed by the AO u/s 143(3) vide assessment order dated 29.12.2016, the assessee filed first appeal before learned CIT(A) which was dismissed by ld. CIT(A) who rejected contentions of the assessee vide appellate order dated 15.11.2017, by holding as under:- 8.3 I have carefully considered the facts of the case, discussion of the AO in the assessment order, oral contentions and written submission of the assessee and material available on record. In respect of this issue the Ld. AR was asked by the AO to explain to whom the gifts were given and how the expenditure was incurred wholly and exclusively for the purpose of business, it is the observation of the AO that the Ld. AR, however, was unable to explain the same. Even during the instant proceedings, the Ld AR of the appellant but for making the submission as above has not given any factual details of giving gifts to business customers/associates from whom the business was done/benefited. Under the facts and circumstances of the case and discussion here in above, the conclusion reached by the Assessing Officer is found to be justified and is accordingly upheld. This ground is accordingly dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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