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TMI Blog2023 (2) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... standi to agitate on the same issue and on same facts. This is in line with the ratio laid down in the case of Radhasoami Satsang [ 1991 (11) TMI 2 - SUPREME COURT] wherein it has been held that where there is no change in facts and circumstances and revenue has accepted decision in one year , then the revenue cannot be allowed to agitate the same in the other years. Accordingly we set aside the order of Ld. CIT(A) and direct the AO to delete the addition. Consequently ground no. 1 is allowed. Disallowance u/s 14A r.w.r. 8D - HELD THAT:- We observe that the Ld. CIT(A) has principally agreed that only those investments are required to be considered for making disallowance under Rule 8D(2)(iii) which yielded exempt income during the year. However due to non-availability of the details of those investments the disallowance was upheld by ld CIT(A). In our opinion the Ld. CIT(A) has given correct findings that only those investments are required to be taken into accounts for calculating disallowance under Rule 8D(2)(iii). Accordingly we restore this issue to the file of AO to calculate the disallowance only by taking those investments which yielded exempt income during the year. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Accordingly we reverse the order of Ld. CIT(A) and direct the AO to delete the addition. Accordingly ground no. 4 is allowed. - I.T.A. Nos. 541 & 542/Kol/2022 - - - Dated:- 17-1-2023 - Shri Rajesh Kumar, Accountant Member And Shri Sonjoy Sarma, Judicial Member For the Appellant : Shri Siddharth Agarwal, Advocate For the Respondent : Shri P. P. Barman, Addl. CIT ORDER Per Rajesh Kumar, AM: These are the appeals preferred by the assessee against the separate orders of the Ld. Commissioner of Income Tax (Appeals)-20, Kolkata (hereinafter referred to as the Ld. CIT(A) ] dated 26.08.2022 for the AYs2013-14 2014-15. 2. Issue raised in ground no. 1 is against the confirmation of addition of Rs. 22,22,358/- as made by the AO on account of sponsorship expenses incurred by the assessee company on the ground that the expenses were not wholly and exclusively incurred for the purpose of business. 3. Facts in brief are that in the assessment proceedings, the AO observed that the assessee has debited a sum of Rs. 22,22,358/- under the head professional training expenses. The AO observed that said expenses were incurred towards sponsorship expenses for doing s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r pursuing MBA programme in USA. The daughter was without any specialized education, qualification or experience when she was inducted as a whole time director of the company. She signed an agreement with the company and undertook to remain in the employment of assessee company for a period of not less than one year from the date of completion of higher education/training. In this case A.O. had held that there was no nexus between the expenditure on higher education and the propogation of the business of the assessee company. The action of the A.O. was upheld by the Hon ble High Court. In confirming the action of the A.O. the Hon ble court also distinguished the judgement of the Hon ble Delhi High Court in Kostub Investment Ltd. Vs. CIT (2014) 365 ITR 436. (b) In the case of Indian Galvanics Cyrium Foils Ltd. Vs. DCIT, Circle-4(4), Mumbai, (2018) 95 taxmann.com 259, Hon ble Mumbai High Court has also decided a similar issue against the assessee. In this case the assessee company was engaged in manufacturing of copper foil. The assessee had claimed certain expenses under the head management training and development expenditure. It was incurred for higher education and training ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penses oneducation. Hence, disallowance of assessee s claim was upheld. In the instant case, Shri Harsh Vardhan Bharech is not even an employee of the assessee company. Still, assessee company is claiming to sponsor the foreign education of Shri Harsh Vardhan Bharech in the hope of reaping benefits in future when he completes his studies. (d) Perusal of details reveal that Shri Harsh Vardhan Bharech was simply 12th passed when he had applied for further studies at University of Sussex, UK. Shri Harsh Vardhan Bharech did not possess any special qualification which may justify selection and sponsoring of his studies abroad by the company. If the company was bothered about improving its functioning it would have hired a qualified professional from some business College. If the company had hired trained professional then it would have at least known the feed back from the respective institute regarding the skill and acumen of that particular person. Normally private sector hires management trainees when they have completed their graduation and thus they are specialised in a particular field. Deciding to hire somebody in future just after the person has cleared 12th exam would not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... locus standi to agitate on the same issue and on same facts. This is in line with the ratio laid down by the Hon ble Supreme Court in the case of Radhasoami Satsang vs CIT [1992] 193 ITR 321 (SC) wherein it has been held that where there is no change in facts and circumstances and revenue has accepted decision in one year , then the revenue cannot be allowed to agitate the same in the other years. Accordingly we set aside the order of Ld. CIT(A) and direct the AO to delete the addition. Consequently ground no. 1 is allowed. 6. Issue raised in ground no. 2 is against the confirmation of addition of Rs. 22,115/- by the Ld. CIT(A) as made by the AO under Rule 8D(2)(iii). 7. After hearing the rival contention and perusing the material on record including the finding of the Ld. CIT(A) as given in Para 4.3 , we observe that the Ld. CIT(A) has principally agreed that only those investments are required to be considered for making disallowance under Rule 8D(2)(iii) which yielded exempt income during the year. However due to non-availability of the details of those investments the disallowance was upheld by ld CIT(A). In our opinion the Ld. CIT(A) has given correct findings that only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f repairs to building on which the assessee failed to deduct tax at source u/s 194C of the Act. 13. Facts in brief are that the assessee during the year incurred these expenses for purchases of material from Mehmood Hassan and the nature of material were bricks, stones, grite and sands etc. According to AO, the assessee has contracted with Mehmood Hassan for purchase of these materials and therefore TDS u/s 194C should have been deducted. Accordingly the AO disallowed the expenses u/s 40a(ia) of the Act and added the same to the income of the assessee. 14. The Ld. CIT(A) simply affirmed the order of AO by holding that TDS was required to be deducted which was not deducted and thus justified the addition. 15. After hearing the rival contention and perusing the material on record including the order of authorities below, we find that the assessee has purchased building materials, the details whereof has been placed before us and is available in the PB. We find that the assessee has purchased materials only comprised bricks, stones,sand and grite etc. from Mehmood Hassan on which the provisions of TDS are not applicable as provided u/s 194C of the Act as this is just a purcha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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