Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (10) TMI 768 - AT - Income TaxLease rental payments to a non-resident party - assessee claimed this expenditure as allowable expenditure u/s 37(1) - HELD THAT:- As keeping in view the fact that the lease rentals have been indeed paid for the accommodation of the employees and the recipient is a tax resident of USA with no PE in India, we hold that no disallowance is called for under this head. Pre-operative Expenses - assessee claimed the expenses pertaining to financial consultancy and investment advisory in relation to mutual fund investments as a deductible revenue expenditure - HELD THAT:- As is evident that the decisive test to determine if the two businesses of the assessee (IT enabled support services and financial consultancy and investment advisory in relation to mutual fund investments) constitute the same business or not, is not the nature of two businesses but whether two businesses are inter-connected and inter-dependent, which can be demonstrated through existence of common management common business organizations, common funds, etc. Since, there is a complete unity of control, management and funds between the IT-enabled services and financial consultancy and investment advisory in relation to mutual fund investments, carried out by assessee be construed as “one business” of the assessee. Hence, keeping in view the ratio laid down by B.R. Limited Vs. Gupta (VP) [1978 (5) TMI 3 - SUPREME COURT] we hold that the directions of the ld. DRP cannot be supported.
|