TMI Blog2013 (8) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... ure is made from Reliance or Simplex, the same would be offered to tax, whenever it is received - Following decision of CIT Vs. Walchand & Co. (P) Ltd. [1967 (3) TMI 2 - SUPREME Court] and Sasoon J. David & Co. (P) Ltd. Vs. CIT [1979 (5) TMI 3 - SUPREME Court] - Decided in favour of assessee. - ITA No. 5925/Del/2010 - - - Dated:- 2-8-2013 - Shri R. P. Tolani And Shri Shamim Yahya,JJ. For the Appellant : Shri Khivendra Gupta Ms. Gagandeep Kaur For the Respondent : Ms. P. K. Sidhu CIT (DR) ORDER Per R. P. Tolani, J. M. This is assessee's appeal against assessment order dated 8-10-2010for A.Y. 2007-08 passed by the assessing officer u/s 143(3) after seeking directions from DRP u/s 144C(13) of the Income-tax Act, 1961. Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... management services in respect of a residence building 'Antilia' in Mumbai and as per the terms the assessee was required to provide expatriate construction staff at Mumbai in helping the project and for this purpose certain clauses were inserted about the remuneration. According to assessing officer, the agreement provided various facilities to be provided to assessee without bearing any costs. Assessing officer found that assessee had debited a sum of Rs. 15,14,717/- on account of salary to local employees working on Reliance project. Assessing officer held that in view of this agreement, assessee was not supposed to incur any expenditure and it ought to have been paid/recovered from Reliance. Consequently, the same was disallowed on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m Delhi and the expenditure incurred is related to Delhi office' maintenance etc. and the expenditure is not covered by the said Reliance agreement. 4.1. Similarly, the administrative expenditure also, detail whereof were furnished with assessing officer, were incurred during the course of normal business activity of the assessee and they have not been charged from the client. 4.2. The assessee is operating full fledged branch in India and for its own operations has to incur independent expenditure for such operation unrelated to Reliance Project. The claim of the assessee that these expenditures are in the course of business cannot be recouped from the Reliance or Simplex projects, is evident from the fact that no assessee will forego ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judgment in the case of SA Builders Ltd. Vs. CIT 288 ITR 1 (SC), which has laid down the proposition of commercial expediency and for the purpose of business. (ii) CIT Vs. Dalmia Cement (Bharat) Ld. 254 ITR 377 for the proposition that revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the board of directors and assume the role to decide how much is reasonable expenditure having regard to the circumstances of the case. 4.4. Further reliance is placed on the ratio of decisions in the cases of Addl. CIT vs. Kuber Singh Bhagwandas 118 ITR 379 (MP); CIT Vs. Walchand Co. (P) Ltd. 65 ITR 381 (SC); and Sasoon J. David Co. (P) Ltd. Vs. CIT (1979) 118 ITR 261 (SC). 5. Ld. CIT(DR) suppo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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