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TMI Blog2025 (4) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... ct'). 2. Heard both the parties at length. Case file perused. 3. This assessee's appeal raises the following substantive grounds: "1. That on the facts and circumstances of the case, the order dated 28.08.2018 passed by the learned Commissioner of Income Tax (Appeals) ['CIT(A)'] is without judicious appreciation of the facts and positon in law, and thus, erroneous insofar as the same upholds the order dated 31.08.2016 passed by the Assessing Officer ['AO']. 2. That the CIT(A) erred on facts and in law in confirming the disallowance of Rs. 3,62,94,780 being the business expenditure incurred by the Appellant, and claimed as deduction, allegedly on the ground that: (i) the activities of the Appellant do not qualify as & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... invoking the provisions of Section 14A of the Act without appreciating that no satisfaction was recorded having regard to the books of accounts of the Appellant, that certain expenditure was actually incurred for earning any exempt income. That the appellant seeks leave to add, alter, amend or withdraw any ground of appeal before or at the time of hearing of this appeal." 4. We now advert to the basic relevant facts qua this assessee's instant first and foremost substantive ground claiming business expenditure of Rs. 3,62,94,780/-; made by the Assessing Officer and upheld in the lower appellate discussion reading as under:- "4. Determination 4.1 Grounds of appeal Nos. 1 and 2 challenge the disallowance of business expenditure and con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant. It is to be noted that as per the memorandum of Association, the main object of the assessee company has been stated to be to carry on the business of development, establishment and running of networks and distribution of non-news and current affairs television channels. arranging band placements, seeding of set-top boxes etc. within India and abroad across different mediums etc. Another of the main objects is to produce, buy, sell, import, export or otherwise deal in television programs etc. and to carry on the business of consultancy and management of projects in News and broadcasting sectors. As noted by the AO it is seen that no income from these activities is apparent from the financial statements of the assessee even though th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. This is what leaves the assessee aggrieved. 6. We have given our thoughtful consideration to the assessee's and Revenue's vehement rival submissions. We find no reason to sustain the impugned disallowance. Learned counsel first of all takes us to the Assessing Officer's section 143(3) assessment for AY 2012-13 accepting this very expenditure claim. He next quotes various judicial precedents i.e Mazagaon Dock Ltd. Vs. CIT (1958) 34 ITR 368 (SC); CIT Vs. Upasana Hospital, (1997) 225 ITR 845 (Ker); CIT Vs. Distributors (Baroda) (P.) Ltd. (1972) 83 ITR 377 (SC); CIT Vs. Amalgamations (P.) Ltd. (1977) 108 ITR 895 (Madras) and ESSAR Investments Ltd. Vs. DCIT (2006) 7 SOT 378 (Mum) that a business expenditure could not be disallowed even in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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