9911796707
TMI Blog2022 (12) TMI 875X X X X Extracts X X X X X X X X Extracts X X X X ..... d to DRS Industries Ltd. 1. The CIT (Appeals) erred in sustaining the rent paid to M/s. DRS Industries contrary to the facts, law and circumstances of the case. 2. The CIT (Appeals) erred in sustaining the rent paid to M/s. DRS Industries hy the Appellant contrary to the acceptance of the Agreement dated 30.06.2010. 3. The CIT (Appeals) failed to note that as per clause 7 of Agreement Dt. 30.06.2010 the Appellant has to pay the rent and the same was paid accordingly. 4. The CIT (Appeals) failed to consider Form 16A for TDS. 5. The Appellant has brought the said rent amount of Rs.32,40,000/under the heading OTHER EXPENSES which reflects in NOTE No. 19 of the Income Tax Return. 6. The CIT (Appeals) failed to note that once p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which has been separately shown under "OTHER INCOME" in the income returned. Thus, the CIT (Appeals) erred in sustaining the balance amount of Rs.13,62,695/- [35,79,359-22,16,664]. 12. The CIT (Appeals) failed to note that once the reimbursement of Rs.22,16,664/- is accepted under the heading "OTHER INCOME" accordingly, the entire expenses incurred towards advertisement has to be accepted. 13. The CIT (Appeals) cannot accept the Agreement dated 30.06.2010 in piecemeal and the same has to be accepted entirely. 14. The CIT (Appeals) failed to note that the Agreement is accepted as valid by the same Assessing Officer in the case of M/ s.DRS Industries and same cannot be negated in the case of the Appellant. 15. The Appellant craves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al is disallowance of rent paid to M/s. DRS Industries Ltd. The fact with regard to the impugned dispute are that, the assessee claims to have entered into an agreement with M/s. DRS Industries Ltd for purchase of Skoda cars dealership. As per said agreement between the assessee and M/s. DRS Industries Ltd., from the date of agreement i.e., 30.06.2010, within three months the dealership should be transferred to Miracle Cars India Pvt Ltd., i.e, appellant. Since, the assessee had entered into an agreement for purchase of dealership, it has carried out business of spares sales and services of cars and has paid rent to land owner amounting to Rs. 32,40,000/-. The AO has disallowed rent paid to M/s. DRS Industries Ltd., on the ground that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder should be upheld. 7. We have heard both the parties, perused materials available on record and gone through orders of the authorities below. The undisputed facts are that the agreement between the assessee and M/s. DRS Industries Ltd., dated 30.06.2010 did not materialize and consequently, the dealership of Skoda cars sales & services has not been transferred to the assessee. Further, the rent agreement in respect of premises where the business was carried out by M/s. DRS Industries Ltd., was also in the name of M/s. DRS Industries Ltd., and the land lord. Therefore, the question of assessee making rent payment directly to land owner does not arise. It is not case of the assessee that it has paid rent to M/s. DRS Industries Ltd., in p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urred by the assessee, on the ground that there is no valid agreement between the assessee and M/s. DRS Industries Ltd., for incurring advertisement expenses. The ld. CIT(A) on appeal, allowed relief to the extent of reimbursement got from M/s. DRS Industries Ltd., and balance amount has been sustained. 9. We have heard both the parties, perused materials available on record and gone through orders of the authorities below. The Ld. Counsel for the assessee rested his arguments on the basis of agreement between the appellant and M/s. DRS Industries Ltd., and argued that the assessee has incurred advertisement expenses, because it was supposed to takeover dealership business from M/s. DRS Industries Ltd. We find that there is no valid agreem ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
