TMI Blog2022 (11) TMI 890X X X X Extracts X X X X X X X X Extracts X X X X ..... ual employees of associate company - HELD THAT:- As submitted that payments for purchase of all the three vehicles were made by the assessee company and these cars were used for the business purpose of the assessee company. However, on perusal of material on record, it is found that assessee has not placed on record relevant supporting evidences to demonstrate that vehicles were used for the purpose of business and copy of Board Resolution, etc. to substantiate that assessee company was authorized to purchase these vehicles in the name of the employees of the group concern, etc. Therefore, we restore this issue to the file of the Assessing Officer to decide afresh after verification and examination of the relevant supporting details to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y : Shri Somendu Kumar Dash Sr DR ORDER PER : Shri Amarjit Singh ( Accountant Member ) : This is an appeal filed by the assessee against the order passed by the Learned Commissioner of Income-tax (Appeals)-53, Mumbai [hereinafter Ld.CIT(A)]dated 26/05/2017 against the assessment order passed by the Assessing Officer under section143(3) of the Income-tax Act, 1961 (in short, the Act) for the Assessment Year 2012-13. The grounds of appeal raised by the assessee are as under:- Following grounds of appeal are without prejudice to each other: 1) The Learned CIT (A) has erred in law on facts in upholding the disallowances of Rs.l,19,82,373/-made u/s 14A r.w. Rule 8D(2)(iii) of the Income Tax Act, 1961 in the order pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f assessment, the Assessing Officer observed that assessee has not made any disallowance for the expenses incurred towards earning exempt income as per provisions of section 14A of the Act. Therefore, the Assessing Officer has computed the disallowance under section 14A r.w.r. 8D(2)(iii) to the amount of Rs.1,19,82,373/- and added to the total income of the assessee. During the course of appellate proceedings before the Ld.CIT(A), the Ld.CIT(A) directed the Assessing Officer to recompute the quantum of disallowance under section 14A r.w.r. 8D as per the alternative plea of the assessee, after considering only those investments from which exempt income was received by the assessee as per the decision of Hon ble Delhi High Court in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the paper book filed by the assessee on page 243, it was submitted that by the Board Resolution, the assessee company has authorized the three employees to purchase the vehicles on behalf of the company. It was also submitted that all three persons were the employees of the group concern of the assessee company with whom the assessee company had regular business transactions. It is also submitted that payments for purchase of all the three vehicles were made by the assessee company and these cars were used for the business purpose of the assessee company. However, on perusal of material on record, it is found that assessee has not placed on record relevant supporting evidences to demonstrate that vehicles were used for the purpose of busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the business of the group concern of the assessee company, viz. Vijaydurg Ports Private Limited s Greenfield Port Project at Sindhudurg District in Southern Maharashtra (VDPPL) which had used the high speed vessel for carrying out on-site investigation, surveys and status for the purpose of submitting the detailed project report to the Maharashtra Maritime Board. The assessee has submitted that the said expenses were incurred on yacht which was used in connection with the group concern VDPPL. However, the assessee has not substantiated with any relevant supporting evidence that these expenses were used for the business purpose of the assessee company, therefore, we do not find any reason to interfere in the decision of the Ld.CIT(A). ..... X X X X Extracts X X X X X X X X Extracts X X X X
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