9911796707
TMI Blog2021 (9) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... erred in passing the order under section under section 250 of the Income Tax Act, 1961 ('Act'), confirming the adjustments made by the Deputy Commissioner of Income Tax, Circle 23(2), New Delhi ('AO') in the assessment order passed under section 143(3) of the Act. Each of the ground is referred to separately, which may kindly be considered independent of each other. 1. Ground No. 1 - The order passed by learned CIT(A) is bad in law 1.1 On the facts and circumstances of the case and in law, the learned CIT (A) has erred in not appreciating the submissions as well as the case laws relied upon by the Appellant, while summarily rejecting it by relying on the order passed by the learned AO. 2. Ground No. 2 - Addition of remuneration pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant craves for leave to add, amend, vary, omit or substitute any of the aforesaid grounds at any time before or at the time of hearing of the matter with the Income Tax Appellate Tribunal." 3. The assessee company is engaged in providing telecommunications services. The assessee started its commercial operations in AY 2009-10 and is currently engaged in providing National Long Distance ('NLD') as well as International Long Distance ('ILD') Telecom services to its Indian and overseas customers. The Assessee filed the return of income for the present assessment year on 30th November 2012 declaring a total income of Rs. 7,68,92,720 under normal provisions of the Act and Book Profit of Rs. 5,10,27,746 under special provisions of Section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced before the Assessing Officer as well as before the CIT(A). The provisions of Section 37(1) clearly set out that once the proper approval has been taken the writing off advance recoverable cannot be disallowed. It is a genuine business expenses, the additions made by the Assessing Officer cannot be said to be in the nature of capital expenditure, since no enduring benefit accrues or arises to the assessee from advancing loan to the MD. Thus, the same accordingly acquires character of revenue expenditure. The said expense are being incurred wholly and exclusively for the purpose of the business of the assessee and hence, is fully deductable u/s 37(1) of the Act. Therefore, the Assessing Officer as well as the CIT(A) was not right in makin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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