TMI Blog2023 (1) TMI 1270X X X X Extracts X X X X X X X X Extracts X X X X ..... which, payments have been made. From the history of such payments made, it is further evident that beginning from 2007-08, the expenditure claimed has been allowed in all assessment years, past and future, except, the impugned assessment year. It is relevant to observe, in assessment years 2007-08 and 2010-11, Commissioner (Appeals) has allowed such expenses. Thus, we are of the view that the assessee having incurred the expenses for its business, is entitled to claim deduction. Accordingly, we delete the disallowance. Disallowance of miscellaneous expenses - no supporting evidence for incurring of the expenditure was furnished - HELD THAT:- Expenses are incurred under various heads, such as, market development expenditure, professi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue in the light of the ratio laid down in case of Checkmate Services Pvt. ltd. (supra). Ground is allowed for statistical purposes. - ITA No. 1931/Del/2017 - - - Dated:- 19-1-2023 - SHRI G.S. PANNU, HON BLE PRESIDENT AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER For the Appellant : Sh. Yogesh Thar, CA, Sh. Ankit Aggarwal, Advocate For the Respondent : Sh. Mrinal Kumar Das, Sr. DR ORDER PER SAKTIJIT DEY, JM: Captioned appeal by the assessee arises out of order dated 31.01.2017 of learned Commissioner of Income Tax (Appeals)-37, New Delhi, pertaining to assessment year 2002-03. 2. In ground no. 1, the assessee has challenged disallowance of Rs. 75,37,408/-, being payment made to M/s. Ballarpur Industries Ltd. tow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned counsel appearing for the assessee submitted that all details were furnished before the Assessing Officer in course of assessment proceedings. In this regard, he drew our attention to letter dated 15th January, 2014 stated to have been furnished before the Assessing Officer in course of remand proceeding. He also drew our attention to agreement dated 4th April, 2001 between the assessee and M/s. Ballarpur Industries Ltd. and submitted, the assessee actually received facilities and services from M/s. Ballarpur Industries Ltd. in terms of the agreement. In this context, he drew our attention to the debit notes issues by M/s. Ballarpur Industries Ltd. Finally, he submitted, no such disallowance was ever made by the Assessing Officer in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... astructure. Thus, M/s. Ballarpur Industry Ltd. provides not only facilities but various services through its technically qualified personnel to other group companies as well as assessee and the cost incurred is shared with the group companies. From the debit notes placed in the paper-book, it is observed, the cost incurred by M/s. Ballarpur Industries Ltd. for other companies, including assessee includes, car lease rent, traveling expenses, printing and stationary, professional expenses, office maintenance expenses, electricity and water expenses, corporate expenses like salary etc., computer maintenance expenses, telephone expenses etc. Thus, from the materials available on record it is noticeable that the assessee, in fact, has availed ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appearing for the assessee submitted that at no stage of proceedings before departmental authorities, the assessee was called upon to furnish the bills and vouchers. He submitted, the expenditure incurred forms a miniscule part of the turnover of the assessee. Further, he submitted, no such disallowance has been made in any other assessment year. 10. Learned Departmental Representative strongly relied upon the observations of the Assessing Officer. 11. We have considered rival submissions and perused the materials on record. As observed earlier, the departmental authorities have disallowed assessee s claim of expenditure primarily on the ground that no supporting evidence for incurring of the expenditure was furnished. As could be see ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n made. Accordingly, this ground is dismissed as not pressed. 14. In ground no. 4, the assessee has challenged disallowance of Rs. 19,44,344/- representing employees contribution to Provident Fund (PF). It is the case of the assessee before us that the payment having been made within the due date of filing of return of income, it has to be allowed. 15. However, in a recent decision in case of Checkmate Services Pvt ltd. Vs CIT- I , Civil Appeal No. 2833 of 2016 Ors, dated 12th October, 2022, the Hon ble Supreme Court has laid down the ratio that unless employee s contribution to PF is remitted within the due date prescribed under section 36(1)(va) of the Act, no deduction can be allowed. 16. In view of the aforesaid, we remit the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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