9911796707
TMI Blog2022 (7) TMI 944X X X X Extracts X X X X X X X X Extracts X X X X ..... , Mumbai [the learned CIT (A)] in case of Schoeller Technologies India Pvt. Ltd (assessee), who has also filed cross objection. 02. In ITA No.2407/Mum/2019, the appeal is filed by the Income Tax Officer, Ward 15(3)(3), Mumbai (the learned Assessing Officer) raising following grounds of appeal:- "1. On the fact and circumstances of the was correct in case, whether the Ld. CIT (A) law, in deleting the addition made under section 41(1) of the Income-tax Act, 1961, amounting to Rs. 3,12,73,991/- not written off by the assessee company in respect of unpaid expenses like commission, Royalty, knowledge know-how fees etc., ignoring the fact that the assessee company has already paid/claimed and therefore the assessee's case falls within the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re is a mismatch between the books and annual information report." 04. Brief fact of the case referred to from the orders of the lower authorities shows that Assessee Company engaged in the business of processing textiles for the use of defense personnel. 05. It filed its return of income for A.Y. 2015-16 on 31st October, 2015 at Rs.8,15,210/-. The case of the assessee was picked up for scrutiny. 06. During the course of scrutiny, the learned Assessing Officer noted that assessee is liable to pay Rs.3,12,73,991/- to Scholler Textile AG for various expenses such as commission, royalty, knowhow fees which were debited in earlier years. As the amount was outstanding for a long time, the learned Assessing Officer questioned that why the abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for looking after working of the company. This was not disallowed for this year because of the efforts of Mr. Sanjeev Swamy. 011. The learned Assessing Officer noted that no tax has been deducted from payment. Further, on verification, he found that though the above sum was claimed to be paid to Mr. Sanjeev Swamy as business promotion expenses, was in fact credited to the account of Douceur Sportswear Mfg Co Pvt. Ltd. The assessee could not produce the accounts from that company, therefore, the learned Assessing Officer held that assessee has failed to prove whether these expenses were incurred wholly and exclusively for the purpose of business and hence, disallowed. There was some AIR mismatch of income of 7,95,698/-, which was also add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned Departmental Representative supported the order of the learned Assessing Officer and the learned Authorized Representative supported the order of the learned CIT (A). 018. The facts are clear that Scholler Textiles AG is the promoter of the assessee company. The assessee was making consistent losses for the last several years and therefore, the promoter company was supporting the assessee in continuing its survival. The sums payable to the promoter towards commission, knowhow fees and royalty are outstanding constantly for 2012-13 onwards. The accumulated losses of the company is Rs.2.57 crores and therefore, the sum payable to the holding company remained unpaid. Part of the sum was received as loan and a sum of Rs.3,01,66,005/- was ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
