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2020 (12) TMI 544 - AT - Income TaxRectification of mistake - Addition of sponsorship and promotional income received by assessee - HELD THAT:- The said amount was considered while computing expenses under the head, ‘Marketing Cost’ before debiting it to P&L account. Ld.CIT(A) notes that, clarification was provided by assessee in rectification petition under 154 of the Act before Ld.AO, regarding entries in P&L account. Authorities below failed to appreciate that marketing income been considered as net of expenses, and therefore does not appear separately having credited under the head income. Ld.AR submitted that, assessee has considered respective income under relevant heads before debiting expenses to profit and loss account. We therefore do not find any justification in confirming the addition by Ld.CIT(A), and the same is deleted. Addition of reimbursement of security charges received - AR submitted that, security charges received, was reduced under the head ‘Operating cost’, forming part of ‘Direct expenses’ - HELD THAT:- Assessee has submitted that sum of ₹ 35, 85, 414/-is included in ₹ 45, 12, 061/-credited under the head ‘Security Charges’ at page 5157 in Ledger account. In our view, this aspect needs verification vis-a-vis debit notes/invoices raised. We direct assessee to file relevant documents to establish its claim. Ld.CIT(A) is directed to verify the documents filed by assessee. In the event it is found that ₹ 35,85,414/- is included, as submitted by Ld.AR, the addition may be deleted. Accordingly this ground raised by assessee stands allowed for statistical purposes. Addition in respect of reimbursement of HVAC/Power charges received - AR submitted that, reimbursement is credited to related expenses incurred, and net expenses are considered in statement of P&L account as expenditure - HELD THAT:- Said amount was considered while computing expenses under the head, ‘Power & Fuel’ before debiting it to P&L account. We note that, authorities below failed to appreciate that Reimbursement of expenses marketing income been considered as net of expenses and therefore does not appear separately having credited under the head income. Ld.AR submitted that, assessee has considered respective income under relevant heads before debiting expenses to profit and loss account. We therefore do not find any justification in confirming the addition by Ld.CIT(A), and the same is deleted.
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