9911796707
TMI Blog2019 (12) TMI 1251X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 23/02/2016 relevant to Assessment Year (AY) 2013-14. The assessee has raised the following grounds of appeal: 1 The Ld.CIT(A) has grossly erred in law and on facts in allowing the appeal partly. He ought to have allowed the appeal fully in accordance with the ground of appeal raised by the appellant before him. 1. Disallowance of Event Management Expenses Rs. 4,25,000/- 1. The Ld.CIT(A) has erred in law and on facts in partly confirming the disallowance on account of Event Management Expenses of Rs. 4,25,000/- as against the total disallowance made by the Ld.AO of Rs. 8,50,000/- 2. The ld.CIT(A) has erred in law and on facts in failing to properly consider the submission made by the appellant company. The appellant reserves it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 422.00. Accordingly the assessee claimed that such expenditure was incurred wholly and exclusively in connection with the business and therefore the same is eligible for deduction under section 37 of the Act. 4. However the AO was of the view that such event organized by the assessee was more akin to a wedding/birthday celebration rather than a business event. As such, the prospective buyer for such shop/office will not be interested in such kind of activities rather they will focus more on the property. 4.1 The assessee has also incurred the brokerage expenses for Rs.17 lakhs in connection with the sale of such property. The brokerage expenses suggest that the assessee could not find out the prospective buyer out of such event organized ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s decorated with special lighting effects and an attractive ambience was generated to have a great look to attract the people to the property. In my view, this was the best way to bring the property into limelight and showcase the best of the property and its use premises for regular entertainment activities or businesses of this type. Considering the high stake involved in the property the event management activity at the property itself cannot be called against the business prudence or not for the business purpose. In my view all the ingredients of section 37 are satisfied in the present case and the expense is allowed. It was held in CIT v. williamson Tea (Assam) Ltd. [2013] 38 taxmann.com 154 / 355 ITR 323 / 263 CTR 96 (Gau.):- " Held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. We have heard the rival contentions of both the parties and perused the materials available on record. From the preceding discussion, there is no ambiguity in the genuineness of the expenses incurred by the assessee. As such, there was no evidence brought on record suggesting that the impugned expenses were in the nature of bogus expenses. However, the onus lies on the assessee to justify the expenses incurred by it by furnishing the details as desired by the authorities below. From the order of the learned CIT (A) we note that the learned CIT (A) agreed that such expenses were incurred in connection with the business of the assessee. However the assessee failed to furnish the following details: i. Details of the invitees. ii. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
