9911796707
TMI Blog2023 (2) TMI 685X X X X Extracts X X X X X X X X Extracts X X X X ..... eight of evidence, natural justice, probabilities, without jurisdiction, bad in law and all other known principles of law. 2. The total income computed and total tax computed is hereby disputed. 3. That the Learned CIT-Appeals-NFAC without looking into records maintained in the office of CIT-Appeals erred in dismissing the appeal for want of prosecution on the facts and circumstances of the case. 4. That the Learned CIT-Appeals-NFAC ought to have passed an order based on the statement of facts, grounds of appeal. and the submissions made during the course of hearing of the appeal. 5. That the order passed by the Learned CIT-Appeals-NFAC without providing adequate and sufficient opportunity as required in law is in violation of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant and the revenues earned from the Appellant's business activity cannot be ignored merely because the service recipients are related, the Appellant raised invoices on their Trustee-company i.e.. Hasham Premji Private Limited, which made the payment of those invoices while the expenses were borne by the respective investment trusts. 10. That the Learned CIT-Appeals-NFAC ought to have appreciated that the AO having regard to the facts and circumstances of the case was not justified in law in disallowing the expenses clearly eligible for deduction u/s. 37(1) of the Act, Tabulated below: Particulars Amount claimed u/s 37(1)/32 Amount disallowed in the order u/s 143(3) Salaries and bonus 18,85,47,832 18,71,39,157 Profes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany is engaged in the business of providing investment advisory services and derives its revenues in the nature of fee income for the same. The assessee filed the return of income for the AY 2014 15 electronically on 17.11.2014 declaring a loss of Rs. 21,73,58,780, of which Rs. 54,65,906 was by way of unabsorbed depreciation. The intimation under section 143(1) of the Income-tax Act,1961 ['the Act' for short] dated 21.12.2014 was issued and a refund of TDS of Rs. 59,25,750 together with interest under section 244A of Rs. 2,00,386 were granted. The case was selected for scrutiny and notice under section 143(2) of the Act dated 31.08.2015 was issued. The AO verified the background and recorded the following finding of facts in the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, and proof for the services rendered by the Appellant. The details were duly furnished by the assessee. The AO directed that the proof of services rendered to Hasham Premji Private Limited (HPPL) be furnished and in this regard the AO also called for the financial statements of the said company. Apart from the bills raised and Form No. 16A, the assessee also furnished the Service Agreements with its clients to whom investment advisory services were rendered including the agreements with PI Opportunities Fund I and PI Opportunities Fund II, of which HPPL was a trustee. The Appellant also submitted a copy of the financial statements of HPPL and it was also clarified that the bills raised on HPPL were in its capacity as Trustee of PI Opport ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpediency vide its note dated 25.11.2016. Stating that the aforesaid submissions of the Appellant is very much general in nature and the same can be said by any entity for any type of business, without adducing to any of the submissions or details on record or producing any evidence to the contrary, the AO has come to the conclusion that the Appellant could not furnish any proof to substantiate that the expenses were incurred in relation to business activity. The AO has stated that the Appellant could not furnish any business report, certificate of attending meetings, seminar certificates, project summary, reports etc. In view of the same, the AO has proceeded to make a disallowance, under normal computation of expenses incurred under the v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of Late Tukoji Rao Holker Vs. CWT (1997) reported in 223 ITR 480 dismissed the appeal of the assessee for non-prosecution. Against this assessee is in appeal before us by way of above grounds. 4. We have heard the rival submissions and perused the materials available on record. In our opinion, the ld. CIT(A) ought to have decided the issue in dispute on merit instead of dismissing the appeal for non-prosecution since he has the power of enhancement. At this stage, we refrain from commenting anything about the issues raised by the assessee before us. Accordingly, we remit the entire issues in dispute to the file of ld. CIT(A)/NFAC to decide the issue afresh after giving one more opportunity of hearing to the assessee in accordance with l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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