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2017 (6) TMI 183 - ITAT KOLKATA

2017 (6) TMI 183 - ITAT KOLKATA - TMI - Allowability of business expenditure - Held that:- The assessee is in the business of hiring taxis based on the calls received at the call centre and transferred to taxis at various destinations, which is popularly referred to call taxi services. From a perusal of the miscellaneous expenses it appears that the expenditure like taxi meters, printer for taxi meters, IVH ( to receive data from call centre) MDT which receives data from IVH etc, are included in .....

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ot regarded to be as capital expenditure. Nevertheless allowability of expenses in question u/s 37(1) of the Act is also dependent on the condition that these expenses were incurred by the assessee for the purpose of business of the assessee. We therefore set aside the order of CIT(A) and remand the question to the AO for fresh consideration with a liberty to the assessee to file evidence to show incurring of these expenses by the assessee. We may also add that the accounting treatment given by .....

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-05. 2. Grounds of appeal raised by the Assessee read as follows :- 1. THAT the LD CIT(Appeals) was not just9ified in confirming the disallowing of ₹ 37,21,420/- out of misc. expenses of ₹ 37,26,420/-. The observation of the Ld. CIT(A) for dismissing the appeal on this ground is wrong, arbitrary and misconceived. 2. That the appellant craves for leave to alter, amend, modify any of the grounds and/or take additional Grounds before or at the time of hearing of this appeal. 3. The Asse .....

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evidence of incurring of miscellaneous expenses and justify the quantum of expenses with reference to the volume of business. According to the AO the assessee had not filed any evidence regarding incurring of expenses and also had not explained the justification of these expenses with reference to the volume of business of the assessee. In this regard the AO also observed that during the previous year the assessee had receipts only to the extent of ₹ 3,90,183/- from driver rental and recru .....

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business carried out by the assessee. The AO accordingly disallowed the claim of assessee for deduction of ₹ 37,21,420/-. 4. Before CIT(A) the assessee contended that the entire expenditure was incurred for the purpose of business of the assessee. It was submitted by the assessee that the expenses were wholly and exclusively for the purpose of business of the assessee and since it was the first year of the business the expenditure was high. The assessee also pointed out that for the purpos .....

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ver confirmed the order of AO observing as follows :- Appellant s submission and facts available on record is carefully considered. Assessment record was called for and verified. On verification of the assessment record it is seen that appellant has merely given various broad heads under which the expenditure was incurred. No other details of expenditure such as bills/vouchers or at least name, address and amount of payment made was furnished. From the broad heads given, it is seen that most of .....

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he order of the CIT(A), the Assessee has preferred the present appeal before the Tribunal. Before us the ld. Counsel for the assesse pointed out that it was not correct on the part of CIT(A) to hold that the assessee had not furnished details of bills, vouchers and addresses of the persons to whom payment was made. It was also submitted that the expenses were revenue expenses and were deductible while computing the income from business. The ld. DR relied on the order of CIT(A). 7. We have consid .....

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p. 348,443 69,689 278,754 Advance - Driver Recruitment 129,099 25,820 103,279 Advance - Taxi Operations 446,462 89,292 357,170 3,703,460 740,692 2,962,768 8. In the course of assessment proceedings, the AO issued a notice dated 26.10.2005 u/s 142 (1) of the Act in which he had called for certain details. The details with regard to the miscellaneous expenses had not been called for by the AO. The assessee in a letter dated 27.09.2006 has however furnished the details of the miscellaneous expenses .....

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efit of these expenditure were to accrue in long term. However, since the expenditure was incurred during the year for the purpose of business the same should be allowed in this year irrespective of its treatment in the accounts. 9. As we have already seen that the assessee is in the business of hiring taxis based on the calls received at the call centre and transferred to taxis at various destinations, which is popularly referred to call taxi services. From a perusal of the miscellaneous expens .....

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