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2018 (7) TMI 571 - AT - Income TaxDisallowance on account of infrastructure and referral fee treating the same as non business expenses - Held that:- There is no evidence that the assessee has used any other infrastructure facility located at such other places. It is also evident that the assessee till the preceding assessment year was able to do same nature of business activity from its place of business. It is also undisputed fact that the assessee did not get any referral client. There is no detail available on the record about the number of branches owned by both the companies and which the assessee was entitled to use. The assessee claimed to have used the office premises to the extent of 1800 sq feet along with other facilities of the said companies. But there are no individual details of the facility used by it has been furnished, e.g. how the area was determined, how the sitting arrangement of the assessee staff was made, how many telephone line was allotted to the assessee, what was the basis of the sharing of the expenses. Since assessee company is an NBFC registered with RBI, and it is carrying its business activity from a place other than its registered office. There was no detail filed by the assessee whether this fact was communicated to RBI intimating that it is carrying on its financial activities from a place other than its registered office. But no such detail was available on record. AO should re-examine the entire issue and therefore to verify the genuineness of the transaction, we remit the issue to the file of AO for fresh adjudication - Derided in favour of revenue for statistical purposes.
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