TMI Blog2016 (7) TMI 1358X X X X Extracts X X X X X X X X Extracts X X X X ..... d to be deleted - Decided in favour of assessee Rejecting all expenses - not accepting the business income offered by the assessee company - Held that:- It is noted that complete details and documentary evidences have been filed before the lower authorities. This fact has not been controverted by the Ld. DR. There was no justification for not treating the income under the head ‘income from business’. Similarly, there is no justification for not allowing the expenses claimed by the assessee. Under these circumstances, we direct the AO to treat the income shown by the assessee under the head ‘Income from business’. With regard to the expenses, the issue is sent back to the file of the AO for allowing adequate opportunity to the assessee to file requisite details and evidences. The AO shall consider the entire material on objective basis and shall allow the expenses accordingly. No expenses should be disallowed without confronting the doubts to the assessee. This ground may be treated as allowed, for statistical purpose. Addition u/s 69A - unexplained income received from SSSMPL - Held that:- the undisputed facts on record are that the assessee did not receive any such amount fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rejecting all the expenses, without considering the facts and circumstances of the case. 4.On the facts and circumstances of the case as well as in Law, the Learned CIT(A) has erred in confirming the action of Learned Assessing Officer in making an addition of ₹ 1,54,00,000I- u/s.69A of the Income Tax Act' 1961 as alleged Unexplained income received from M/s. Sovereign Safe ship Management Ltd, without considering the facts circumstances of the case. 2. During the course of hearing, arguments were made by Shri Rishabh Shah, CA and Shri Srikant Namdeo, JCIT, Sr .DR. 3. Grounds 1 2: These grounds pertain to solitary issue, wherein the assessee has challenged the action of lower authorities in bringing to tax the entire amount of ₹ 52,29,950 as income of the impugned assessment year whereas as per the assessee, a part of a this amount i.e. a sum of ₹ 37,12,500 pertained to the subsequent assessment year i.e. A.Y. 2011-12. 4. The brief facts are that during the impugned assessment year assessee raised invoices upon one of its group companies, viz. M/s Sovereign Safe Ship Management Pvt Ltd (hereinafter called SSSMPL) on account of software licen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such a hyper-technical approach. We find that the Hon ble Bombay High Court had given clear guidance for deciding such matters in the case of CIT vs Nagri Mills Co Ltd (supra) by observing as follows: 3. We have often wondered why the Income-tax authorities, in a matter such as this where the deduction is obviously a permissible deduction under the Income-tax Act, raise disputes as to the year in which the deduction should be allowed. The question as to the year in which a deduction is allowable may be material when the rate of tax chargeable on the assessee in two different years is different; but in the case of income of a company, tax is attracted at a uniform rate, and whether the deduction in respect of bonus was granted in the assessment year 1952- 53 or in the assessment year corresponding to the accounting year 1952, that is in the assessment year 1953-54, should be a matter of no consequence to the Department; and one should have thought that the Department would not fritter away its energies in fighting matters of this kind. But, obviously, judging from the references that come up to us every now and then, the Department appears to delight in raising poi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he income under the head income from business . Similarly, there is no justification for not allowing the expenses claimed by the assessee. Under these circumstances, we direct the AO to treat the income shown by the assessee under the head Income from business . With regard to the expenses, the issue is sent back to the file of the AO for allowing adequate opportunity to the assessee to file requisite details and evidences. The AO shall consider the entire material on objective basis and shall allow the expenses accordingly. No expenses should be disallowed without confronting the doubts to the assessee. This ground may be treated as allowed, for statistical purpose. 14. Ground 4: In this ground, the assessee has challenged the action of the AO in making addition of ₹ 1.50 crores u/s 69A of the Act as alleged unexplained income received from SSSMPL. 15. The brief background of this issue is that it was noted by the AO from the balanced-sheet of SSSMPL that it had given advance of ₹ 1.50 crores to the assessee through its director, but since the assessee has not shown the receipt of such advances in its books of account, therefore, the aforesaid sum became unexp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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