TMI Blog2013 (2) TMI 906X X X X Extracts X X X X X X X X Extracts X X X X ..... is a private limited company engaged in the business of interior decoration and manufacturing of modular furniture as per the specification of its customers. During the period under consideration, the assessee had entered into contract works with various clients including M/s. Cognizant Technologies Solutions Pvt. Ltd. The said company had treated the work undertaken by the assessee under the head Professional charges whereas, other clients of the assessee treated the work done by the assessee as Contract Receipts and deducted tax at source at the rates applicable thereto. 3. The assessee filed its return of income for the assessment year 2004-05 declaring its income as ₹ 94,11,910/-. The assessment under section 143(3) was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal and prayed that the appeal of the Revenue be allowed. 5. On the other hand, Shri V.S.Jayakumar appearing on behalf of the assessee stated that the order of the CIT(A) is a well-reasoned and detailed and the same should be upheld. The learned AR submitted that there is no suppression of sale of furniture. The assessee has shown the sale/supply of goods under the head Contract Receipts in the profit and loss account. The amount under the said head includes both; the amount received on account of interior decoration as well as supply of furniture to the same customer according to their specification. As regards foreign travel expenditure, the learned A.R. submitted that the directors of the assessee company had to visit various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re the CIT(A) that the expenditure was incurred for importing machineries for the purpose of business. For the purchase of machineries, the Directors had to visit Srilanka, Dubai and Germany. The contract was entered into for purchase of machineries with the German company and machineries were imported during the financial year 2004-05 relevant to the assessment year 2005-06. The assessee had claimed expenditure under foreign travel expenses as revenue expenditure. The CIT(A) held that there is no dispute about the company having incurred expenditure and import of machineries for the business purpose. The Directors of the company had visited foreign countries for the purpose of purchase of machinery and there was direct nexus between the im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rimarily on the following grounds:- (i) The CIT(A) has erred in deleting the addition to the tune of ₹ 7,95,44,742/- on account of suppression of professional receipts from M/s. Cognizant Technology Solutions Ltd. (ii) The CIT(A) allowed the entire sum of premium paid on Keyman Insurance. The assessee was eligible only for a sum assured value of ₹ 4,62,63,645/- for which premium is ₹ 46,26,334/- whereas the assessee paid a sum of ₹ 2,35,34,723/-. 10. The learned DR assailing the order of the CIT(A) relied on the grounds of appeal. On the other hand, the learned A.R. submitted that the order of CIT(A) is a well-reasoned, detailed and speaking order. 11. We have heard the submissions made by both the partie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nch of the Tribunal in the case of P.G. Electronics Vs. ITO reported as 15 SOT 79 has held that Keyman Insurance Premium has to be allowed as expenditure in view of Board s Circular No.762 (supra). 13. In view of the categoric issue-wise findings of the CIT(A) in the impugned order, we do not deem it appropriate to interfere with the same and uphold the order of the CIT(A). Therefore, the appeal of the Revenue for the assessment year 2005-06 is also dismissed as it is devoid of merit. 14. Since, the counsel for the assessee has not pressed the Cross Objections filed by the assessee and in view of the fact that appeals of the Revenue have been dismissed, both the Cross Objections of the assessee are dismissed as having become infructuo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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