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TMI Blog2022 (8) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... een entered by assessee with VPPL. However, it appears that the assessee has not furnished copy of MOU before the tax authorities. We are unable to understand as to how the assessee could share profit and loss through MOU. In any case, there should not be any doubt that it is the responsibility of the assessee, to prove that the MOU has created binding legal liability upon the assessee. Accordingly, in the interest of natural justice, we are of the view that the assessee may be provided with one more opportunity to present copy of MOU and explain its claim before learned CIT(A). Accordingly, we set aside the order passed by learned CIT(A) on this issue and restore the same to this file for adjudicating them afresh. Disallowance of trave ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iced that the assessee has shown three cars as its assets, but they stood in the name of three persons, who are employees of a sister concern - HELD THAT:- There should not be any doubt that for claiming depreciation on an asset, it has to be proved that the assessee is the owner of the asset. Merely disclosing an asset as its asset in its books of account will not be sufficient to prove the ownership. Hence, in the instant case, it is imperative for the assessee to prove that, it is in fact the owner of the vehicles, though they are standing in the name of some remotely connected persons. We notice that the assessee has not furnished enough details to prove ownership except stating that it is shown as its own asset in the books of accounts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition of Rs. 1,03,76,000/- relating to yatch finance expenses. 6. Before learned CIT(A), the assessee challenged the validity of reopening of the assessment and also addition made by the Assessing Officer. However, none appeared before learned CIT(A) and hence he proceeded to dispose of the appeal ex-parte, without presence of the assessee. The Ld CIT(A) upheld the validity of reopening of assessment and also confirmed the addition. Aggrieved, the assessee has filed this appeal. 7. We heard learned Departmental Representative and perused the record. We have noticed earlier that learned CIT(A) was constrained to pass the order ex-parte, since assessee did not represent before him. In the interest of natural justice, we are of the view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000/- but did not make any disallowance under section 14A of the Act. He took the view that the disallowance under section 14A is compulsory. However, he restricted the disallowance to the amount of exempt income of Rs. 3,06,000/-. 11. We heard learned Departmental Representative on this issue and perused the record. We noticed the Assessing Officer had disallowed a sum of Rs. 1,03,83,665/- whereas learned CIT(A) has restricted the disallowance to the amount of exempt income. We notice that the decision so rendered by learned CIT(A) is supported by the decision rendered by Hon ble Delhi High Court in the case of M/s Marg Ltd vs. PCIT (TCA No.41 to 43 220 of 2017 dated 30-09-2020). Accordingly, we confirm the order passed by learned CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e any doubt that it is the responsibility of the assessee, to prove that the MOU has created binding legal liability upon the assessee. Accordingly, in the interest of natural justice, we are of the view that the assessee may be provided with one more opportunity to present copy of MOU and explain its claim before learned CIT(A). Accordingly, we set aside the order passed by learned CIT(A) on this issue and restore the same to this file for adjudicating them afresh. 15. The next issue relates to the disallowance of part of travelling and car expenses. The AO examined these expenses and came to the conclusion that certain expenses are not related to the business and further details relating to certain items were not furnished. Accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his issue requires fresh examination at the end of Ld CIT(A). Accordingly, we set aside the order passed by Ld CIT(A) on this issue and restore the same to his file for examining it afresh in accordance with law. 19. The last issue relates to the disallowance of depreciation on car. The AO noticed that the assessee has shown three cars as its assets, but they stood in the name of three persons, who are employees of a sister concern. Since the vehicles were not in the name of the assessee company, the AO disallowed the claim of depreciation. The Ld CIT(A) noticed that he had confirmed identical disallowance made in the hands of the assessee in AY 2012-13. Following the same, the Ld CIT(A) confirmed the disallowance. 20. We heard Ld D.R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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