Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2017 (2) TMI 335 - ITAT AHMEDABAD

2017 (2) TMI 335 - ITAT AHMEDABAD - TMI - Allowance of expenditure of direct and indirect nature - assessee is a cricketer receiving match fees/retainerships from various cricket bodies as declared under the head ‘income from business and profession’ - Held that:- Assessee clarifies that the assessing authority itself had verified correctness of the impugned expenses. The same however does not emanate from the assessment order. We further find that neither the Assessing Officer nor the CIT(A) ha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

djudication in accordance with law after affording adequate opportunity of hearing to the assessee so as to prove the above direct nexus. - Decided in favour of revenue for statistical purposes. - ITA Nos.140 & 141/Ahd/2016 - Dated:- 31-1-2017 - SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER, AND SHRI S. S. GODARA, JUDICIAL MEMBER For The Revenue : Shri Byomkesh Pandu, Sr. D.R. For Th Assessee : Shri Hemal Desai, A.R. ORDER PER S. S. GODARA, JUDICIAL MEMBER These two Revenue s appeals for assessment years .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

addition of ₹ 30,92,801/- out of ₹ 31,73,928/- pertaining to direct and indirect expenses in former assessment year and from ₹ 45,88,255/- to ₹ 45,16,589/- in latter assessment year; as made by the Assessing Officer. 3. We come to relevant facts now. This assessee derives income from playing cricket sport, sponsorship and marketing. He claimed various expenses under the head business development, office, salary, office rent, other interests, petrol expenses, repair/mainte .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

declared under the head income from business & profession . He sought to clarify that the expenditure in question was to over look his personal/professional aspect like conveyancing, legal matters, laisoning and physical fitness etc. in order to remain professionally fit to play the above cricket sport. The Assessing Officer declined to accept the same on the ground that since the assessee had been deriving match fee and retainerships from various cricket bodies, they did not involve any bus .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he CIT(A) partly reverses Assessing Officer s action in both assessment years as indicated in Revenue s pleadings as under: 3. Decision:- Submissions made by the appellant have been considered with reference to the assessment order passed. Only effective ground of appeal is against the addition of ₹ 31,73,9287- made by the AO by disallowing various expenditure claimed by the appellant. The AO stated as under in the assessment order:- "The reply of assessee considered carefully and fou .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he assessee is not doing any trading activity not any manufacturing activity nor any acquired any qualification from which it can be said that he is doing profession. Therefore he is also not deriving income from professional activities. Therefore it is very much clear that the expenditure claimed by the assessee is not attribute to any business or profession. In view of above the expenditure of ₹ 31,73,928/- claimed by the assessee as business expenditure is not an allowable expenditure. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

missions of the appellant, the disallowance of all the expenses made by the AO are not found justified. The appellant is a well known cricketer and returned income of ₹ 1,53,20,056/- for the year under consideration. To earn the said income, the appellant had to in incur some expenditure. Playing cricket is the profession of the appellant and TDS was also deducted considering the receipts of the appellant as professional receipts. The findings of the AO that expenditure is not allowable, i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

24,000.00 BANK CHARGES AND INTEREST 27,014.63 BUSINESS DEVELOPMENT EXP 4,22,296.00 DEPRECIATION EXP 3,51,359.09 INSURANCE EXPENSES 17,727.00 LOAN PROCESSING CHARGES 5,183.00 Misc Exp 23,304.00 OFFICE EXPENSES 2 , 4 2 , 0 2 0 . 0 0 OFFICE RENT 1,08,000.00 OTHER INTEREST 2,05,733.77 PETROL EXP 2,80,106.48 REPAIR AND MAINTANANCE EXP 17,450.00 SALARY EXPENSES 8,46,718.00 STATIONARY EXP 10,248.00 TELEPHONE EXP 95,856.24 TRAVELLING EXP 5,13,717.48 VEHICLE EXP 80,422.00 Net Profit 1,56,44,289.01 Total .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e said income. Therefore, the expenses claimed by the appellant are found genuine looking to his income returned for the year. However, about the indirect expenditure, out of the following expenditures, personal elements cannot be ruled out: (i) Petrol Expenses Rs.2,80,106 (ii) Repair & Maint. Exp Rs.17,450 (iii) Travelling Exp. Rs.5,13,717 Total Rs.8,11,273 As mentioned above, out of the total expenditure of ₹ 8,11,273/-, I consider 10% of the same i.e. ₹ 81,127/- as incurred fo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version