Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2012 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (5) TMI 75 - HC - Income TaxITAT allowed payment made to company and C & F Handling Charges Held that:- Supported by details of expenditure that expenditure is neither wholly of exclusively for the business of the assessee company nor it is allowable u/s. 37 - the assessee or CMD has not given any information how many total man-hours were available and at what level and how much Man hours were spent on this company - it has not given the man-hours spent on this particular company - whether the services are rendered and the expenditure incurred is wholly and exclusively for business purpose has not been proved- no evidence placed on record by the assessee to show that its sales were promoted by the appointment of the handling agent - against assessee. Payment made to the Corporate Management Division allowed by ITAT - Held that:- Whatever the evidence the assessee furnished in the nature of correspondence with the CMD it is covered by the Technical Assistance Agreement made for which separately amount has been paid and no other services have been rendered which is over and above this Technical Assistance Agreement - also held that the expenditure is not wholly and exclusively for business purposes the disallowable expenditure which is not allowable under the I.T. Act the particular company cannot be indirectly allowed to CMD like entertainment or perks disallowable u/s. 37, 40A and 40(c) against assessee.
|