TMI Blog2018 (5) TMI 1637X X X X Extracts X X X X X X X X Extracts X X X X ..... IT) ORDER PER: VIJAY PAL RAO, J.M. This appeal by the assessee is directed against the order dated 28.12.2017 of ld. CIT(A), Jaipur for the assessment year 2013-14. The assessee has raised the following ground under as under:- 1. That the Learned CIT(Appeals) erred in confirming addition of ₹ 1,00,00,000/- on account of disallowance of contribution of ₹ 1 Crore towards Rajasthan Bhawan, Mumbai. The same is allowable expenditure and addition of ₹ 1,00,00,000/- deserves to be deleted. 2. During the year under consideration the assessee contributed a sum of ₹ 1 crore to Rajasthan Bhawan Mumbai at Mumbai and the same was debited to the P L account. The AO was of the view that the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction of such asset cannot be allowed as business expenditure. 4. On the other hand, the ld. AR of the assessee has submitted that this issue has been considered and decided by this Tribunal in various cases including in the case of Rajasthan Renewal Energy as well as M/s Rajasthan State Industrial Development Investment Corp. Ltd. vs. DCIT in ITA No. 311/JP/2014, 420/JP/2014, 323/JP/2016, Co. No. 07/JP2016, ITA No. 313/JP/2014, 421/JP/2014, 93/JP/2015, 207/JP/2015, 94/JP/2015, 208/JP2015 vide order dated 23.02.2018. He has further submitted that as per the order dated 24.10.2017 the Government of Rajasthan has allowed the assessee a rebate of 50% for stay in the Rajasthan Bhawan Mumbai at Mumbai. He has filed a copy of the said order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of law that in a case of ownership against immovable property, the unconditional interest in absolute term with freedom to sell, alienate ect. is transferred by the seller to the purchaser, which is admittedly not the case over here. Under these circumstances we are of the view that the Ld. CIT(A) has rightly come to the conclusion that no capital assets have been created to the assessee but only a privilege or a reservation of four rooms were made on permanent basis to the assessee. Therefore, the provisions og guest house at Delhi was in the normal course of business and expenditure incidental to it is of revenue nature. The ld. CIT(A) has rightly observed further that the AO has not appreciated the facts properly that total expenditur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntentions and pursued the material available on record. It is not disputed that the contribution towards construction of Rajasthan Bhawan has been made as directed and authorized by the State Government, being the owner and shareholder of the assessee company. The question is therefore not about the authorization before incurrence of the said expenditure. The question is whether the said expenditure has been incurred by the assessee company for the purposes of its business or not. The onus is on the assessee company to establish the said fact. The ld AR has submitted that the assessee company has written to the Government of Rajasthan to provide accommodation facilities in the Rajasthan Bhawan to its officers on their visit to Mumbai, howev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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