9911796707
TMI Blog2023 (9) TMI 887X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2,25,29,243/-is to be allowed as expense of the assessee. 2. The Ld. CIT(A) has erred in not adjudicating upon the justification of expenditure of Rs. 2,25,29,243/- w.r.t. head office expenses u/s 37(1) vis-a-vis the receipts of the assessee. 3. The Ld. CIT(A) has erred in holding that the rectification made by the AO is not based on correct appreciation of facts, whereas, the AO, while appreciating the fact that the remittance of Rs. 2,25,29,243/-is an expense of the assessee, has added back the amount of Rs. 2,25,29,243/-to the income of the assessee for the relevant assessment year." 3. It is a case of rectificatory order under section 154 of the Income Tax Act, 1961 (the "Act") of an assessment framed upon the assessee company un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the parent company at Singapore and an expense of the appellant. Accordingly, the remittance of this software, services and expenses "by" the appellant had been incorrectly assumed as remittance "to" the appellant, and added u/s 154 as undeclared receipts. 8.3 The appellant has submitted a summary of head office expenses aggregating to Rs. 2,25,29,243/- which is reproduced above. A perusal of Form 26AS shows that the TDS had been deducted and deposited on the remittance of Rs. 2,25,29,243/- from FCS- India (Indian PE)to the Head office. It is observed that a complete reconciliation in this regard had been submitted to the AO by the appellant on 08.07.2016 which showed that the impugned amounts were expenditure of the appellant/Indian P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mark up on call centre charges. The appellant went for appeal against the additions made. The Ld. CIT(A)-42, Delhi in his order dated 11.09.2017 deleted both the additions and allowed the appeal. Thereafter, the AO issued a notice u/s 154 on 22.04.2021 stating that justification of head office expense of Rs. 2,25,29,243/- has not been taken on record which shows that receipts to the tune of Rs. 2,25,29,243/4 have not been declared by the appellant. As no reply was filed by the appellant, the AO made the rectification vide order date 06.07.2021 by adding Rs. 2,25,29,243/- to the total income." 9. It is thus obvious that the assessment was made under section 143(3) r.w.s. 144C(3) on 06.12.2016 of the Act determining the total income of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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