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M/s. Kishens Accounting Solutions Pvt. Ltd. Versus Income Tax Off icer 9 (2) (2) , Mumbai

Disallowance of rent - rent has been paid by the assessee to the licensor under the head agreement of amenities - Held that:- The Licensor has confirmed the payment for extra amenities which has been produced. Further the TDS has also been deducted by the assessee to the tune of ₹ 19,250/- and the challan in this regard has also been produced. The licensor has also produced the affidavit confirming the transaction. The assessee / licensee has also produced the bank statement on record whic .....

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nce of deferred revenue expenditure - whether the deferred revenue expense is required to be allowed or not? - Held that:- Matter of controversy has been adjudicated by the Hon’ble High Court of Bombay in case of Commissioner of Income Tax – 2, Mumbai V/s. Raymond Ltd. [2012 (4) TMI 127 - BOMBAY HIGH COURT] wherein it is specifically held that the preoperative expenses which are in nature of revenue is liable to be allowed in the interest of justice. In view of the said circumstances we are of t .....

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that:- The expenditure is in connection with the expenditure incurred by the employee of the assessee due to their exigency. All work and thereafter this expenditure was entered into the cash book without reimbursement to the said employees. However, after the reimbursement on record the entries were recorded in the account books. This contention was not discussed by the Assessing Officer as well as CIT(A). Therefore, in view of the said circumstances we are of the view that the expenditure to .....

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R.C.SHARMA, AM AND SHRI AMARJIT SINGH, JM For The Assessee : Shri Sushil U. Lakhani For The Department : Shri B.S.Bist ORDER PER AMARJIT SINGH, JM: The assessee has filed the present appeal against the order dated 29.10.2014 filed by the assessee passed by Commissioner of Income Tax (Appeals) 20, Mumbai [hereinafter referred to as the CIT(A) ], Mumbai relevant to A.Y.2011-12. 2. The appellant has raised the following grounds:- 1. Disallowance of Rent of ₹ 215,000/-:- On the facts and circ .....

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f ₹ 58,635/-:- On the facts and circumstances of the case and in law, the AO erred in making an addition of ₹ 58,635/- on the grounds that there were negative cash balances appearing in the cash book on various dates. 3. The brief facts of the case are that the assessee filed its return of income on 09.09.2011 declaring total loss to the tune of ₹ 95,789/-. The return was processed u/s.143(1) of the Income Tax Act, 1961 ( in short the Act ). Subsequently, the case was selected .....

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er, therefore the assessee has filed the present appeal before us. ISSUE NO.1:- 4. Under this issue the assessee has challenged the confirmation of disallowance of rent to the tune of ₹ 2,15,000/-. The rent has been paid by the assessee to the licensor under the head agreement of amenities lies at page 14 of the paper book. This agreement is the part and parcel of the leave and license agreement executed by the licensee i.e. assessee and the licensor. The CIT(A) has declined this piece of .....

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ecuted by the licensor/ assessee for paying an amount of ₹ 55,000/- as amenities charges for the period w.e.f December 2010 to December 2013. The veracity of these documents are required to be ascertained by the Assessing Officer as well as the CIT(A) but they did not do. The Licensor has also confirmed the payment for extra amenities which has been produced before us and lies at 17 of the paper book. Further the TDS has also been deducted by the assessee to the tune of ₹ 19,250/- an .....

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learned CIT(A) has wrongly appreciated the evidences produced before him but did not consider the relevant evidence on record, therefore in view of the said circumstances we of the view that the finding of the CIT(A) is wrong against law and facts therefore the same is not liable to be sustainable in the eyes of law. Therefore, we set aside the finding on this issue and allowed the payment of the rent to the tune of ₹ 2,15,000/- on account of extra amenities for the period December 2010 to .....

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of ₹ 1000/- being 1/5th claim of ₹ 5000/- against the total claim of ₹ 26,880/-. The appellant had incurred certain preoperative expenses amounting to ₹ 1,35,395/-. In earlier this amount was deferred and claimed over a period of 5 years. The Assessing Officer disallowed the said expenses on the ground of that the same was not allowable u/s.35D of the Act. The contention of the appellant is that the appellant did not raise any claim u/s.35D of the Act but has deferred rev .....

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e said circumstances we are of the view that the learned CIT(A) has wrongly confirmed the order of Assessing Officer which is not liable to be sustainable in the eyes of law. In view of the above said law we are of the view that the CIT(A) has wrongly confirmed the order passed by the Assessing Officer, therefore, we set aside the order of CIT(A) on this issue and direct the Assessing Officer to allow the deferred revenue expenses to the tune of ₹ 25,880/-. Accordingly, this issue is decid .....

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reimbursed to the employees. These circumstances left to negative balance being reflected in the cash book. However, in some cases the expenses and withdrawal from the bank were on the same date. As the expenses were booked before withdrawal entry, therefore there was no negative balance. The authority was of the view that no doubt there was negative entry in the cash book but it was also on record that no cash lies with the assessee company. The assessee company without having cash were claimi .....

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