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TMI Blog2020 (12) TMI 544X X X X Extracts X X X X X X X X Extracts X X X X ..... in the manner passed by him. and the learned Commissioner of Income tax, Bengaluru - 5 [CIT(A)] has erred in sustaining the additions made by the learned assessing officer. The order passed by the CIT(A) is bad in law and liable to be quashed. 2. The learned CIT(A) has erred in sustaining the addition of Rs. 46,38,000/- being Sponsorship and Promotional income which was reduced from marketing cost in the Statement of Profit or loss under Note No. 24 - Other Expenses. On facts and circumstances of the case and law applicable, the impugned addition of Rs. 46,38, 000/ - should be deleted in entirety. Addition in respect of Reimbursement of security charges received amounting to Rs. 35,85,414 which was reduced from 'Security Charges' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in confirming the levy of interest under section 234B and 234D of the IT Act, 1961. On facts and circumstances of the case and law applicable, interest under section 234B and 234D is not leviable. The appellant denies its liability to pay interest under section 234B and 234D. Prayer 7. In view of the above and other grounds to be adduced at the time of hearing, the appellant prays that the order passed by the learned Commissioner of Income Tax (Appeals) - 5, Bengaluru to the extent prejudicial be quashed or in the alternative. (i) The addition of Rs. 46,38,0001- made for sponsorship and promotional income be deleted. (ii) The addition of Rs. 35,85,4141- made for reimbursement received on account of security charges be deleted. (i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... escaped assessment. 5. Ld.AO further noticed from 26AS reconciliation that, assessee did not credit Rs. 4,71,90,356/- received as HV AC charges to P&L account. Assessee submitted before Ld.AO that, the said charges were charged to the tenants and reduced from respective expenses and therefore not shown as part of revenue. Ld.AO observed that assessee has not specifically mentioned in its reply, what were the respective expenses charged to the tenants and neither furnished any documentary evidences to prove its claim of reducing from respective expenses. Ld.AO thus added the said sum to the total income of assessee. 6. Aggrieved by additions made by Ld.AO, assessee preferred appeal before Ld.CIT(A). Ld.CIT(A) upheld observations of Ld.AO, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P&L account, sum of Rs. 39,915,786 was debited under the category 'Other expenses'. The breakup of 'other expenses' is at page 48 is in Note 24. Marketing cost at page 48 is Rs. 29,127,363. Ld.AR referring to page 119 of paper book submitted that, breakup of Marketing cost reveals sum of Rs. 48,39,860/- stands reduced from marketing income, and at net marketing cost of Rs. 29,127,363/- was arrived at, that appears in Note 24 at page 48 forming part of 'Other expenses'. 10.2 He thus submitted that, Marketing income has been considered under the head marketing cost and net of expenses is debited to P&L account under the head 'Other expenses'. 10.3 On the contrary, Ld.Sr.DR submitted that, all these clarifications were not filed before Ld.AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rity charges amounting to Rs. 2,54,81,85/- is net of Rs. 35, 85, 414/-. Referring to page 154-157 of paper book, Ld.AR submitted that, security charges received from parties forms part of sum of Rs. 45,12,061/-, that is credited in Ledger, under the head 'security charges'. 11.1 He thus submitted that, Security charges income has been considered under the head operating cost and net of expenses is debited to P&L account under the head 'Direct expenses'. 11.2 On the contrary, Ld.Sr.DR submitted that, all these clarifications were not filed before Ld.AO, and therefore issue may be remanded to Ld.AO for verification. He placed reliance on orders passed by authorities below. 11.3 We have perused submissions advanced by both sides in light o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,40,99,538/- that is debited to 'power and fuel' in Note 21 under the head, 'Direct Expense'. 12.2 He thus submitted that, reimbursement charges received has been considered under the head 'Marketing Fuel' and net of expenses is debited to P&L account under the head 'Direct Expenses'. 12.3 On the contrary, Ld.Sr.DR submitted that, all these clarifications were not filed before Ld.AO and therefore the same may be remanded to Ld.AO for verification. He placed reliance on orders passed by authorities below. 12.4 We have perused submissions advanced by both sides in light of records placed before us. 12.5 From relevant pages relied by Ld.AR, it appears that, said amount was considered while computing expenses under the head, 'Power & Fue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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