Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 1190 - ITAT MUMBAIAllowable business expenditure u/s 37 - expenses of professional fees, security charges, travelling expenses, etc. against the meagre director sitting fees - the assessee’s claim is that to earn the said fee, he had to do liasoning with various government authorities, and the expenses have been incurred genuinely - HELD THAT:- By no stretch of imagination, it can be accepted that the assessee has incurred these expenditure for earning the director sitting fees. The authorities below are quite correct in arriving at a conclusion that there is no nexus between this expenditure incurred and the meagre income shown from other sources. We find that the alternative submissions of the assessee deserve consideration as the assessee has earned remuneration which is assessable as business income. These expenses can be considered u/s. 37(1) as business expenses after factual examination of the nexus with earning the business income. In this regard, the ld. Counsel of the assessee has agreed that the matter may be remitted to the file of the A.O. to examine this aspect. We, accordingly, accede to this request. DR's objection to the alternative request being additional ground not raised earlier cannot be entertained. As it was expounded by the Hon'ble Apex Court in the case of Goetze (India) Ltd. v. CIT [2006 (3) TMI 75 - SUPREME COURT] that the ITAT has powers to admit the grounds raised otherwise than by filing the original return. Accordingly, the alternative issue raised stand remitted to the A.O.
|