TMI Blog2009 (9) TMI 970X X X X Extracts X X X X X X X X Extracts X X X X ..... head Business . Facts remaining the same, the Revenue should take a consistent view. It has been so held in the case of CIT vs. Malbaro Polychem Pvt.Ltd. [ 2008 (9) TMI 193 - RAJASTHAN HIGH COURT] , in the case of CIT vs. Moon Light Builders and Developers [ 2007 (1) TMI 173 - DELHI HIGH COURT] and CIT vs. Dineshkumar [ 2005 (1) TMI 12 - MADHYA PRADESH HIGH COURT] . Thus, if the facts are not different, then view once taken should be followed in subsequent year also. If certain part of expenditure incurred by group concerns in receiving services from the assessee-company is not genuine or is excessive, then action is required to be taken in their hands. Assessee-company is showing the receipts in full as taxable income. There is no reason to either reduce it or change the head. The logic given by the AO in treating the part of the receipt as income from other sources is not comprehendible and does not create any logical difference between receipts taken under the head business and receipt taken under the head other sources . Following the rule of consistency, no such distinction should have been created and secondly, it does not at all affect the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oyees of this concerns. 2. Parking facilities. 3. Conference Room and Properly furnished room for directors for those concerns. 4. Software Development and computer support services. 5. Services of Lab assistant. 6. Internet connection services. 7. Receptionist services. 8. Services of Peons for handling of files. 9. Services for moving the papers to the Bank, filing of Cheques, etc. 3. It was also noticed that except providing services, no business was carried out by the assessee. The various group concerns to whom the services are provided are engaged in the business of manufacturing of Dyes and chemicals. Some of the concerns to whom such services provided are M/s.Jay Chemical Industries having a turnover of more than 100 crores and M/s.J.H. Kharawala Pvt.Ltd. which is engaged in the manufacturing of Intermediates on a large scale. During the year under consideration, the assessee received ₹ 76,13,561/- for providing such House Keeping Services to the group concerns. The Assessing Officer enquired into the genuineness of the work done. On the basis of information furnished by the assessee, the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices under one roof. The recipient of such services were the group concerns. This is not an attempt during the relevant previous year. This arrangement was there from A.Y. 1997-98 onwards. As rightly contended the provision of such services and the object behind utilization of properties owned by the appellant should be seen in a proper perspective and not through a narrow compass. The AO obviously took into account the value of services provided by the limited man power but ignoring the major aspect of provision of office accommodation and support services provided by the appellant company. In fact, he has not made any attempt to find out the floor area made available for use by the group concerns and the possible license charges that could have been collected in an open market condition. The periodical billing or otherwise cannot render the very provision of business support services as not genuine. Incidentally the learned counsel for the assessment proceedings was arguing that lesser payments in the hands of some of the group concerns would have benefited them by way of deduction u/s.80HHC out of total income computed. On the contrary, the appellant company, the recipient of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epresentative of the assessee submitted that the assessee-company is providing following services:- (1) Sitting arrangements are not in the nature of single table chairs, but arrangements are such that all the papers, etc. can be stored, moved and mailed. The conference room for meeting the visitors is also provided. The visitors and staff can use the services of peons who are on the payroll of the company. (2) The company allows the use of computers. This is not a simple hiring of computers. With the help of E.D.P. personnel, the company has developed specific programs which are used by all occupants. The computers may be operated by the personnel of the occupants but all services related to software, etc. are provided to the occupants by the company. (3) The company has entered into Internal Telephone System maintenance contract. All the business related telephones of the occupants are received through this system. The company has also engaged telephone operator and receptionist for the purpose. The company has also entered into internet. It provides the user of this facility to the occupants. (4) Lab assistance of the company helps in testing the mater ..... X X X X Extracts X X X X X X X X Extracts X X X X
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