SHERPALO INDIA ADVISORS (P) LTD.,NEW DELHI vs. ITO, WARD- 23(2), NEW DELHI

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ITA 5906/DEL/2018Status: DisposedITAT Delhi03 September 2019AY 2014-153 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the addition as the assessee did not provide any specific submissions regarding the business nature of the expenses before the CIT(A). In the absence of representation from the assessee, the Tribunal found it difficult to accept that the expenditure was related to the business.

What were the facts?

The assessee appealed against an addition of Rs. 2,80,900 on account of membership and subscription expenses. The Assessing Officer made this addition as the expenses were not related to the business. The assessee failed to make specific submissions before the CIT(A).

What were the issues?

Whether membership and subscription expenses are allowable as business expenditure when the assessee fails to provide specific submissions to substantiate their business connection.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “SMC”: DELHI

Before: SHRI BHAVNESH SAINI

Hearing: 29.08.2019

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES “SMC”: DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA.No.5906/Del./2018 Assessment Year 2014-2015 M/s. Sherpalo Inida The Income Tax Officer, Advisors Private Limited, Ward-23(2), 410, E-2 vs., L-2/37A, DDA, Ekta Block, Civic Centre, Square, New Delhi - 019. New Delhi. PAN AAKCS8766l PIN – 110 002. (Appellant) (Respondent) -None- For Assessee : For Revenue : Shri S.L. Anuragi, Sr. D.R. Date of Hearing : 29.08.2019 Date of Pronouncement : .09.2019 ORDER

This appeal by Assessee has been directed against the Order of the Ld. CIT(A)-8, New Delhi, Dated 29.06.2018, for the A.Y. 2014-2015, challenging the addition of Rs.2,80,900/- on account of Membership and subscription expenses.

2.

The Ld. CIT(A) noted that A.O. made this addition under the Head “Membership and Subscription” as these expenses forming part of other Heads of expenditure is not 2 ITA.No.5906/Del./2018 M/s. Sherpalo Inida Advisors Private Limited, New Delhi. related to the business. The Ld. CIT(A) also noted that assessee has not made any specific submissions regarding the same during the course of appellate proceedings. The Ld. CIT(A) accordingly, dismissed this ground of appeal of assessee.

3.

On 27.03.2019 appeal was adjourned on the request of Counsel for Assessee. Assessee was further notified the date of hearing for 29.08.2019. However, none appeared on behalf of the assessee.

4.

The Ld. D.R. relied upon the impugned order.

5.

After considering the submissions of Ld. D.R. in the light of findings of the Ld. CIT(A), it is clear that assessee failed to made any specific submissions on this issue before the Ld. CIT(A). In the absence of any representation from the side of the assessee, it is difficult to believe that the impugned expenditure would relate to the business of the assessee. This ground of appeal of assessee is accordingly dismissed.

6.

In the result, appeal of Assessee dismissed.

3 ITA.No.5906/Del./2018 M/s. Sherpalo Inida Advisors Private Limited, New Delhi. Order pronounced in the open Court.

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