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TMI Blog2019 (12) TMI 1251X X X X Extracts X X X X X X X X Extracts X X X X ..... ing detail - Details of the invitees,The procedure adopted for selecting invitees, There is no evidence on record suggesting that there was no personal guest of the directors in such event/gathering. CIT (A) made the disallowance to the tune of 50% of the total event management expenses. To our mind, it was the onus of the assessee to furnish at list of the invitees but the learned AR before us has not brought anything on record. In fact, in such kind of business gathering the companies keep a database of the parties who attended the function. This database is crucial for the company which can be utilized in connection with the activity carried on by it. Assessee failed to furnish such details which creates suspicion in the mind so as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 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 ₹ 4,25,000/- as against the total disallowance made by the Ld.AO of ₹ 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 its right to add, ame ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee was able to find out the buyer for the shop/space and generated the gross margin of ₹10,56,84,422.00. 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 ₹17 lakhs in connection with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... menced. The appellant has provided the copy of bill for the event management expense as per Exhibit -II of its letter dated 05.01.2016 and the appellant company has also deducted the TDS as per Section 194C of the Act. From the bill produced, it is seen that event was organized at the property to be sold which is known as Venus Atlantis . The premises was 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by it. Accordingly, the assessee was able to fetch such a handsome price for the shop/office resulting attractive gross margin of ₹10,56,84,422.00. 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. 7. On the other hand, the learned DR vehemently supported the order of the authorities below. 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 re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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