9911796707
TMI Blog2008 (10) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... nt was entered into by the assessee for its business purposes - commercial expediency – Sec. 40 A (2) not invokable for disallowing the said expenditure – revenue appeal dismissed - 1147/2008 - - - Dated:- 3-10-2008 - Advocates who appeared in this case: For the Appellant : Mr R. D. Jolly For the Respondent : Mr Ajay Vohra, Ms Kavita Jha and Mr Sriram Krishna CORAM :- HON'BLE MR JUSTICE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f a maximum of 35 flying hours in a year to be provided by the jet belonging to MAL for an annual fixed charge of Rs 1.19 crores plus variable costs at the rate of Rs 65,000/- per flying hour as against the market rate of Rs 1.25 lacs per hour. The assessee was committed to the payment of fixed charges as indicated above irrespective of the fact as to whether the assessee utilized any of the flyin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as entered into by the assessee for its business purposes and it was in the interest of the assessee to have entered into such an agreement. It was observed that the assessee, being a five star hotel, in order to give better facilities to its premier customers had added the facility of charter flights. As such, the expenditure was incurred in the course of carrying on business. The Tribunal held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich the payment was made. The Tribunal noted that no finding has been recorded by the Assessing Officer to show that similar facilities were available to the assessee at a lower price or that the assessee had made excessive payments. Consequently, in the absence of the such findings the Tribunal concluded that the provision of Section 40 A (2) could not be invoked for disallowing the said expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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