TMI Blog2017 (2) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... ned CIT(A) has merely drawn his conclusions qua genuineness aspect instead of establishing the above stated nexus between each head of expenditure vis-à-vis assessee’s taxable income declared. We deem it appropriate in these facts and circumstances that the issue in question requires Assessing Officer’s re-adjudication 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that he received various incomes from endorsement contract executed with BCCI, GCA, RIL as 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 business or professional activity. He further reiterated that assessee s playing cricket was not akin to a trading or manufacturing or any service activity. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat 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. Accordingly amount of ₹ 31,73,928/- is added to the income of the assessee. Penalty proceedings u/s.271(l)(C) initiated for furnishing inaccurate particulars of income leading to concealment of income. 3.1 The AO stated that as the appellant is a cricketer and therefore no expenses is required to have been made for earning this income. The AO has not considered the income o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ACCOUNTING CHARGES 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 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 for personal purposes and additions to that extent are confirme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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