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2017 (9) TMI 317 - HC - Income TaxAllowance of business expenditure u/s 37- honorarium paid to Dr.Saxena for consultancy services - travel, boarding and lodging expenses paid for Dr. Saxena to attend a Medical Advisory Board meeting for Asia pacific region held at Japan - Expenses incurred on sponsorship for organizing seminars and conferences - Held that:- Mr. Syali is right in his contention that the ITAT placed an unfair burden on the Assessee to prove that the above expense was incurred bonafide for the business purposes of the Assessee. The Assessee had placed before the ITAT all the relevant details thereby discharging the initial onus. Thereafter, it was open to the Revenue to prove to the contrary. It was not going to be possible for the Assessee to show that Dr Saxena “actually delivered any lectures, attended any meetings, provide training courses and seminars for Assessee etc.” The ITAT appears not to have considered the legal position as explained in Commissioner of Income Tax v. United Hotels Limited (2008 (10) TMI 4 - HIGH COURT DELHI) and CIT v. Ashok J. Patel (2013 (12) TMI 1480 - GUJARAT HIGH COURT) as regards burden of discharging the initial onus. It is also not in dispute that the ITAT dealt only with one of the disallowances in the sum of ₹ 13,14,548 and not the other two disallowances in the sum of ₹ 19,06,000 and ₹ 8 lakhs. Since the ITAT has not dealt with these aspects, the Court is of the view that it is necessary to remand the matter back to the ITAT and considers all the three disallowances in the entire appeal alongwith the question whether the CBDT’s Circular No. 05/2012 dated 1st August 2012 would apply to the AY in question of the Assessee on merits afresh.
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