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TMI Blog2022 (12) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... d in law and on the facts in confirming the addition of Rs. 42,19,164/- to the returned income of the assessee by disallowing electricity expenses of Rs. 8,83,939/- (Rs. 3,52,107 + Rs. 531,832) - Rent expenses of Rs. 30,11,626/- (Rs. 3,46,711+ Rs. 26,64,915) and security expenses of Rs. 3,23,599/- in complete disregard to the explanations given in support of the transactions and documents filed by the assessee. (b) All the above expenses were incurred by the assessee for the purpose of its business and not of other companies at all and hence fully allowable u/s 37 of the Act. The addition of Rs. 42,19,164/- so made is illegal, against the provisions contained in the income-tax Act, 1961, bad in law and hence liable to be deleted. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther 17 companies and the same was borne by the assessee for its group companies and therefore the said expenses are held to be not incurred for the business of the assessee. The Ld. A.O. has also disallowed various other business expenses claimed under different heads to the tune of Rs. 10,27,694/- and further disallowed a sum of Rs. 8,615/- u/s 14A of the Act, accordingly, passed the assessment order on 29/12/2016. 4. Aggrieved by the assessment order dated 29/12/2016, the assessee has preferred an appeal before the CIT(A). The Ld.CIT(A) has confirmed the disallowance of business expenses of Rs. 42,19,164/- made by the A.O. Further in so far as the disallowance of Rs. 2,22,200/- made by the A.O. on various business expenses, namely gift ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aimed by the Assessee and the assessee has claimed the expenses by inflating the same, thus, the Ld. A.O. and the CIT(A) have committed no error in disallowing the expenses. 8. We have heard the parties, perused the material on record and gave our thoughtful consideration. 9. The assessee has admitted that there were 17 companies have declared the address of the Assessee as their registered address in the ROC. The Ld. CIT (A) considering the said facts observed hereunder: "In the submission filed during assessment proceedings, it was noticed by the AO that the Friends Colony office was shared by six other companies and Jasola Office by sixteen other companies. However, the entire expenses incurred with relation to these offices were cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee that, the assessee has spent the said amount in cash for gifts and disallowed in the computation of assemble income in the year under consideration. The Assessee has not proved before the lower authorities that the said expenses are related to the business, therefore the Ld.CIT(A) has rightly upheld the view of the A.O that gift and presentation expenses amounting to Rs. 2,67,000/- for crockery expenses and unrelated to the business of the assessee and disallowed the same. However, the Ld. CIT(A) has directed the A.O. to verify the contention of the assessee and further also directed to delete the addition if the same has already been disallowed in computation of assemble income for the year under consideration so as to avoid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fy the name and the person to whom the expenses related and how these expenses were incurred wholly and exclusively for the business purpose. In so far as the Entertainment expenses and club membership claimed by the Assessee, the Ld.CIT(A) is of the opinion that the same were personal activity and not on behalf of the corporate. 15. Though the Ld. Counsel for the assessee vehemently argued that the above expenses are wholly and exclusively incurred on the day to day business of the assessee, but failed to produce any documents either before the lower authorities or before us in support of the contention of the assessee. In our opinion it is for the Assessee to prove that the expenses so incurred are for the purpose of the Business in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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