TMI Blog2008 (11) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... were allowable as they were identifiable – revenue is unable to show that the expenses were not actually incurred by the assessee for the completion of Project – CIT & ITAT were justified in allowing the expenses - 641/2007 - - - Dated:- 7-11-2008 - Advocates who appeared in this case: For the Appellant : Ms Prem Lata Bansal with Mr Sanjeev Rajpal For the Respondent : Mr Ajay Vohra with Ms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... system and related services. The assessee did not have the necessary expertise to execute the said project and, therefore, assigned the same to its parent company being Hughes Network Systems, USA (HNS). There was no formal agreement between the assessee and the parent company (HNS). However, they had an understanding vide letter dated 06.05.1997 that the total amount received by the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 56,18,541/- towards completion of phase-II of the project. According to the assessee, it was entitled to deduct both direct and indirect expenses which had been incurred by it from this sum of Rs 1,56,18,541/- to arrive at the net income of the assessee in respect of this project. The Assessing Officer, however, was of the view that what the assessee received was net income itself and, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Tax Appellate Tribunal. It may be pertinent to note that the assessee also filed an appeal against the order of the Commissioner of Income Tax (Appeals) being aggrieved by the disallowance of their claim of indirect expenses. Both the appeals were disposed of by the said order dated 29.09.2006. The present appeal, however, is concerned only with the issues raised by the revenue in its appeal i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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