TMI Blog2018 (11) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... er documents were required to be produced by assessee before assessing officer to justify its claim for the allowance of this expenditure. - Decided against revenue Addition made of hospitality services - allowable busniss expenditure - Held that:- It is not the case of the learned assessing officer that the above expenditure is not incurred wholly and exclusively or the purposes of the business. The learned AO has merely disallowed the above expenditure holding that it is excessive. To prove anything excessive the learned assessing officer should have compared the expenditure with independent evidence of third parties, which has not been done. In the result, we do not find any infirmity in the order of the learned commissioner appeals i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cessive and disallowed. Assessee preferred appeal before the learned Commissioner Appeals, who deleted both disallowance and therefore learned AO is in appeal before us. 03. The first issue is related to the disallowance of ₹ 5882789/ under the head incentive paid to the players. The fact shows that the Assessee Respondent is engaged in the business of adventure tourism and other sports -related activities. It Paid DA sum under the head incentive to foreign hockey players and support staff of IPL. Assessee Respondent submitted before the AO that the incentive is in fact in the nature of DA for meeting of expenses of the players on day-to-day basis as agreed between the appellant and the players pursuant to the agreement entered wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the assessing officer. 05. The learned authorized representative submitted a paper book and stated that the details of incentive expenditure along with the list of IPL staff with vouchers are attached in the paper book at page number 3 18. The agreement signed by the assessee with the various players is also submitted at page number 19 64 of the paper book. He further referred to the tax deduction at source certificate issued to the players placed at page number 65 66 on the sample basis in case of one player. In view of this, it is submitted that the learned assessing officer has made the disallowance without giving any cogent reason despite the complete details furnished before him. He therefore submitted that the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indings of the learned commissioner appeals were not disputed by the revenue. We also do not find any infirmity in the order of the learned commissioner appeals in deleting the disallowance. Learned assessing officer has not given any reasons for disallowance. It was also not pointed out before us by the revenue that what further documents were required to be produced by assessee before assessing officer to justify its claim for the allowance of this expenditure. In view of this, we dismiss ground number 2 of the appeal of revenue. 07. Coming to the second issue where addition of ₹ 4169331/ is made by the assessing officer because of hospitality services. AO noted during the course of assessment proceedings that assessee has made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he learned senior departmental representative reiterated the argument stated by the learned assessing officer and submitted that such a huge expenditure was not to have been incurred wholly and exclusively for the purpose of the business. Merely because the assessee has shown losses, it cannot be said that any expenditure incurred by the assessee is for the purposes of the business. He therefore supported the order of the learned assessing officer. 10. The learned authorized representative referred to page number 67 124 of the paper book wherein franchisee agreement dated 16/11/2012 was placed. He further referred to page number 12 5 134 with respect to the details of hospitality services expenditure incurred by assessee along with t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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