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TMI Blog2019 (12) TMI 1234X X X X Extracts X X X X X X X X Extracts X X X X ..... er. 2. That on the facts and in the circumstances of the appellant's case and in law, the Ld. CIT(A) erred in sustaining the disallowance of Rs. 1,36,795/- out of electricity expenses made by the Ld. A.O. in the assessment order. 3. That on the facts and in the circumstances of the appellant's case and in law, the Ld. CIT(A) erred in sustaining the disallowance of Rs. 3,07,636/- out of rates and taxes expenses made by the Ld. A.O. in the assessment order. 4. That on the facts and in the circumstances of the appellant's case and in law, the Ld. CIT(A) erred in sustaining the disallowance of travelling expenses of Rs. 9,77,444/- made by the Ld. A.O. in the assessment order. 2. Briefly stated facts are that case of the assessee was pick ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3/-. The A.O. also made addition of Rs. 11,76,420/- on account of disallowance of depreciation and Rs. 9,77,444/- on account of disallowance of travel expenses. Against this, the assessee preferred an appeal before Ld. CIT(A), who after considering the submissions partly allowed the appeal. Thereby, the Ld. CIT(A) allowed the deduction of an amount of Rs. 5,70,760/- in respect of VRS. Disallowance made u/s 43B of the Act in respect of leave encashment was also deleted. The Ld. CIT further confirmed the disallowance of Rs. 3 lakhs related to prior period expenses. The Ld. CIT allowed the ground related to disallowance of sales tax and refund. Further, the Ld. CIT confirmed the addition on account of electricity bills of Rs. 1,36,795/-. In r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal. 6. I have heard the rival submissions, perused the materials available on record and gone through the orders of the authorities below. The Ld. CIT(A) has given its finding in para 7.2 as under: "7.2 The main contention of the appellant is that the Board meeting approving these expenditure has taken place on 21.3.2012 and therefore, the liability for the expenditure has crystalised in the F.Y. 2012-13 only. In this regard, it is noted that the said furnishings and furniture have been put up in the residence of the MD. The expenditure has been incurred during the earlier period. The approval of the expenditure in the Board meeting was only a formality that too in the case of a closely held private limited company. When the expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the A.O. to allow expenditure in the year when such expenditure was incurred, if law so permits at this belated stage. Ground of the assessee's appeal is disposed of in the terms indicated herein above. 8. Ground No.2 is in respect of sustaining disallowance of Rs. 36,795/- out of electricity expenses. 9. Ld. Counsel for the assessee reiterated the submissions as made before the Ld. CIT(A). Ld. Counsel submitted that the electricity expenses were incurred by the assessee. The authorities below have disallowed the expenditure on the ground that the property had already been given on rent. It is contended by the Ld. Counsel for the assessee that the property was occupied by the tenant after 2 months and the property remained vacant. During ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - pertains to lease rent and maintenance charges paid to MPAKVN on the premises let out to Netlink Software Pvt. Ltd. He contended that the expenditure being regular business expenditure deserves to be allowed. 14. Ld. D.R. opposed these submissions and supported the orders of the authorities below. 15. I have heard the rival submissions, perused the materials available on record and gone through the orders of the authorities below. The Ld. CIT(A) has disallowed the expenditure by observing as under: "11.2 The arguments of the appellant have been examined. It is seen that an amount of Rs. 1,71,477/- being property tax has already been disallowed by the appellant in its computation of total income. Therefore, this amount is prima facie w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny Fujitsu is the major share holder, the assessee was required to attend meetings in Japan. 19. On the contrary, Ld. D.R. opposed these submissions and supported the orders of the authorities below. 20. I have heard the rival submissions, perused the materials available on record and gone through the orders of the authorities below. The Ld. CIT(A) has decided this issue in para 13.2 of his order as under: "13.2 I have examined the arguments of the appellant. No evidence whatsoever has been given by the appellant of holding the board meeting in Japan. The nature of business being carried out in the relevant year did not warrant any board meeting, as claimed, to be held in Japan. No agenda papers or minutes of the board meeting has been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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