TMI Blog2020 (10) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... ged the main object as business and removed the object of hotel business from the Memorandum of Association Since the business of the assessee company during the relevant assessment year was only financial services, the income earned during the relevant assessment year ought to be assessed as business income and the entire expenditure incurred by the assessee for earning such income has to be allowed as deduction. Needles to mention, nothing on record is before us to suggest that the assessee company was indulging in any other business activity during the relevant assessment year. Therefore we are of the considered view that the expenditure incurred by the assessee towards salary has also to be allowed as deduction while computing the bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 1242/Chny/2017 dated 27.08.2018, directed the AO to allow the entire expenditure claimed by the assessee. 3. Aggrieved, the Revenue filed this appeal with the following grounds of appeal: 1. The order of the Ld. CIT(A) is contrary to the law and facts of the case. 2. The Ld. CIT(A) erred in deleting the disallowance of expenditure u/s. 36(1)(iii) of the Act of ₹ 28.23 lakhs by relying on the order of the Hon ble Tribunal in ITA No. 1242/Chny/2017 dated 27.08.2018 for assessment year 2012-13 in the assessee s own case, decided in favour of the assessee. 3. The Ld. CIT(A) erred in deleting the disallowance of expenditure u/s. 37(1) r.w.s. 57(iii) of the Act of ₹ 4.93 crores by relying on the order of the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record. From the facts of the case, it is abundantly clear that during the relevant assessment year, the assessee was only engaged in the business of financial services though the main objects in the Memorandum of Association was Hotel Business. It is pertinent to mention that the ancillary objects in the Memorandum of Association also permitted the assessee company to carry on the business of financial services. In the process the assessee company had deployed its fund towards earning interest income because during the relevant assessment year the assessee company did not commenced activities with respect to Hotel Business. Since the business of the assessee company during the relevant assessment year was only financial services, the incom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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