TMI Blog2022 (10) TMI 1140X X X X Extracts X X X X X X X X Extracts X X X X ..... has been incurred at the direction from BMC. The payments have been made by cheque to the contractor sponsored by the BMC. Obviously, the beautification work had been done at the direction of the BMC and a Board is required to put up specifying that the work has been done by a particular individual or company. This is also in the form of advertisement. Here, as it is noticed that the expenditure has been incurred at the instruction of the BMC, we are of the view that it cannot be said the payment has been made for extraneous consideration. This being so, we are of the view that the expenditure is incurred for the purpose of business of the assessee and same is allowable. Appeal of the assessee is allowed. - ITA No. 399/CTK/2015 - - - Date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the expenditure had been incurred for the welfare of the local residents. It was the submission that the ld CIT(A) has confirmed the disallowance on the ground that the expenditure has not brought any gains for the business but made for extraneous consideration. It was the submission that admittedly, the expenditure has been incurred on the basis of instruction from BMC. Ld AR has also placed before us the copy of the letter of Shri Ananta Narayan Jena, Mayor, BMC, wherein, he thanks the assessee for creating a beautiful piece of land from Kalinga Stadium to Jayadev Vihar Chhak. However, in the said letter, he also mentions that there is negative attitude of poor performance from the maintenance contractor and BMC is not in a position to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not. The evidence produced by the assessee clearly shows that the expenditure has been incurred at the direction from BMC. The payments have been made by cheque to the contractor sponsored by the BMC. Obviously, the beautification work had been done at the direction of the BMC and a Board is required to put up specifying that the work has been done by a particular individual or company. This is also in the form of advertisement. Here, as it is noticed that the expenditure has been incurred at the instruction of the BMC, we are of the view that it cannot be said the payment has been made for extraneous consideration. This being so, we are of the view that the expenditure is incurred for the purpose of business of the assessee and same is all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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