Troikaa Pharamaceuticlas Ltd., Ahmedabad V. The Dy.CIT, (OSD),Range-8, Ahmedabad

ITA 1826/AHD/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8070 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 06-07-2017
• Assessment Year: 2006-2007
• Appeal Filed On: 16-06-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Gift; Depreciation; Initiation of penalty proceedings
• Section: 234B; 15

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH BEFORE: SHR I RAJPAL YADAV , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER TROIKAA PHARMACEUTICAL LTD, COMMERCE HOUSE, OPP: RAJVANSH APARTMENT, JUDGES BUNGLOW ROAD, AHMEDABAD - 380015 PAN: AABCT0228K (APPELLANT) VS THE DCIT(OSD), RANGE - 8, AHMEDABAD (RESPONDENT) REVENUE BY : S H RI MUDIT NAGPAL , SR. D . R. ASSESSEE BY: S H RI KARAN SHAH , A.R. DATE OF HEARING : 13 - 11 - 2 017 DATE OF PRONOUNCEMENT : 07 - 12 - 2 017 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMB ER : - THIS ASSESSEE S APPEAL FOR A.Y. 2006 - 07 , AR I SES FROM ORDER OF THE CIT(A) - I, AHMEDABAD DATED 14 - 03 - 2014 , IN PROCEEDINGS UNDER SECTION 115WE (3) R.W.S. 115WG OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . I T A NO . 1826 / A HD/20 14 A SSES SMENT YEAR 200 6 - 07 I.T.A NO. 1826 /AHD/20 14 A.Y. 2006 - 07 PAGE NO TROIKAA PHARMACEUTICAL LTD. VS. DCIT (OSD) 2 2. THE ASSESSEE HAS RAISED FOLLOWING GROUND S OF APPEAL: - 1. THE LD. CIT (A) HAS GROSSLY ERRED IN LAW AND ON FACTS IN PARTLY ALLOWING THE APPEAL. HE OUGHT TO HAVE ALLOWED THE APPEAL FULLY IN ACCORDANCE WITH THE GROUNDS OF APPEAL RAISED BY THE APPELLANT BEFORE HIM. I. ADDITION ON ACCOUNT OF UNDER AS SESSMENT OF FRINGE BENEFIT VALUE - RS. 19,84, 307/ - 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ADDITION ON ACCOUNT OF VARIOUS EXPENDITURE INCURRED UNDER DIFFERENT HEADS OF EXPENSES WHICH HAS BEEN RECLASSIFIED AND REGROUPED BY THE LD. A. O WHICH IS CONTRARY TO THE PROVISIONS OF FBT AND CBDT CIRCULAR NO. 8 OF 2005. 2. THE LD. CIT (A) HAS ERRED IN LAW AND ON FACTS IN FAILING TO PROPERLY CONSIDER APPELLANT COMPANY'S WRITTEN SUBMISSION DATED 11 - 02 - 2014. 3. THE LD. CIT(A) HAS ERRED IN LAW AND O N FACTS WHILE NOT TAKING INTO CONSIDERATION CIRCULAR NO. 8 RELIED UPON BY THE APPELLANT COMPANY. 4. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN GIVING DIRECTION TO THE A.O TO VERIFY WHE THER THE AMOUNT OF RS. 6,17,372/ - WAS SPENT ON THE TRAVELING OF DOC TORS OR DIRECTORS AND IF TRAVELING EXPENSES WERE THAT OF THE DIRECTORS, THE SAME HAS TO BE CATEGORIZED AS CONVEYANCE AND TRAVELING EXPENSES. 5. THE LD. CIT (A) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ADDITION OF RS. 6,15,930/ - WHILE MAKING AN OBSER VATION THAT ' AS FAR AS THE PAYMENT FOR OTHER CLUB FACILITIES OF RS. 6,15,930/ - IS CONCERNED, THE AR OF THE APPELLANT HAS NOT FILED ANY EVIDENCE TO SHOW THAT THE PAYMENT WAS NOT FOR THE USE OF FACI LITIES AT THE CLUB. IN VIEW OF THE ABOVE, THE ACTION OF TH E AO IN TREA TING THE AMOUNT OF RS. 6,15,930/ - AS PAYMENT COVERED BY SECTION 115WB(2)(N) IS JUSTIFIED'. THE LD. CIT (A) HAS FAILED TO CONSIDER THE FACT THAT IN CASE OF PAYMENTS MADE FOR USE OF FACILITIES THAT ARE NOT TYPICALLY 'CLUB FACILITIES', CLAUSE (N) IS NOT ATTRACTED. THE SAME VIEW HAS BEEN GIVEN IN THE ICAI'S VIEWS IN PARA 26.3 'GUIDANCE NOTES ON AUDIT OF FRINGE BENEFIT UNDER THE IT. ACT, 1961'. PRAYER THE APPELLANT THEREFORE RESPECTFULLY PRAYS THAT : - 1. THE ADDITION ON ACCOUNT OF ALLEGED UNDE R ASSESSMENT OF FRINGE BENEFIT VALUE OF RS. 19,84,307/ - CONFIRMED BY THE LD. CIT (A) MAY KINDLY BE DELETED, 2. SUCH AND FURTHER RELIEF AS THE NATURE AND CIRCUMSTANCES OF THE CASE MAY JUSTIFY. 3. THE ASSESSEE HAS FILED RETURN OF FRINGE BENEFIT ON 16 TH DECEMBER, 2006 DECLARING TOTAL FRINGE BENEFIT TO THE VALUE OF RS. 53 , 54 , 244/ - . THE ASSESSING OFFICER HAS COMPLETED ASSESSMENT U/S. 1 15 WE (3) OF THE ACT O N 26 TH DECEMBER, 2008 DETERMINING THE TOTAL FRINGE BENEFIT OF RS. 54 , 02 , 501/ - . THERE AFTER THE AS SESSING OFFICER HAS REOPENED THE ASSESSMENT BY ISSU ING OF NOTICE UNDER SECTION 115 W E(2) OF THE ACT FOR UNDER ASSESSMENT OF FRINGE BENEFITS . IN THE RE ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER HAS TAKEN INTO I.T.A NO. 1826 /AHD/20 14 A.Y. 2006 - 07 PAGE NO TROIKAA PHARMACEUTICAL LTD. VS. DCIT (OSD) 3 CONSIDERATION THE CBDT CIRCULAR NO.8 OF 2005 DATED 25TH OF AUGUST 2005 . IN RESPECT OF TRAVELLING EXPENDITURE ON DOCTO R, THE ASSESSEE HAD STATED THAT DOCTOR S ARE NOT THE CUSTOMER AND CLIENT OF THE ASSESSEE . S UCH DOCTOR S ARE THE BUSINESS DELEGATE OF THE ASSESSEE . IT WAS FURTHER SUBMITTED BY THE ASSESS EE THAT ACCORDING TO THE LANGUAGE OF REPLY TO QUESTION NUMBER 67 THE CLASSIFICATION SHOULD BE MADE ACCORDING TO THE NATURE OF EXPENDITURE. THE ASSESSEE HAS ALSO STATED THAT AS PER IN REPLY TO QUESTION NUMBER 11 OF THE SAID CIRCULAR THE WORD PURPOSE REFERRE D TO THE PROXIMATE PURPOSE AND NOT THE DISTANCE PURPOSE. AS REGARDS , THE DOCTOR S FOREIGN TRAVEL EXPENSES OF RS. 6 , 17 , 372/ - , THE A SSESSEEE HAS SUBMITTED THAT DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE COMPANY HAS INCURRED THESE EXPENSES ON FOREIGN TRAVELLING OF DIRECTORS AND NOT DOCTORS. I N RESPECT EXPENDITURE OF RS. 1 , 14 , 396/ - FOR GIVING APPARATUS TO DOCTORS, THE ASSESSEE CLAIMED THAT THESE ARE THE INCENTIVE GIVEN TO DISTRIBUTORS . THE ASSESSEE SUBMITTED THAT INTENTION FOR GIVING THIS TO DISTR IBUTOR FOR MEETING SALE TARGET ARE IN THE NATURE OF PURPOSE BASED COMMISSION. AS REGARDS , EXPENDITURE OF RS . 6 , 15 , 930/ - UNDER THE HEAD STAFF WELFARE, THE ASESSEE HAS STATED THAT THIS PAYMENT WAS MADE UNDER THE HEAD OTHER CLUB FACILITY FOR BOARDING AND L ODGING AND NOT FOR USING CLUB FACILITIES. THE ASSESSING OFFICER HAS NOT ACCEPTED THE EXPLANATION OF THE ASSESSEE AND TREATED THE SAME AS GENERAL IN NATURE. AFTER TAKING INTO CONSIDERATION, THE PROVISIONS OF SECTION 115WB OF THE ACT I.T.A NO. 1826 /AHD/20 14 A.Y. 2006 - 07 PAGE NO TROIKAA PHARMACEUTICAL LTD. VS. DCIT (OSD) 4 AND THE C BDT CIRCULAR N O. 8 DATED 29/08/2005, THE ASSESSING OFFICER OBSERVED THAT THE EXPENSES INCURRED BY THE ASSESSEE FOR SALE PROMOTION AVAILING CLUB FACILITY ETC . W ERE INCORRECTLY CLASSIFIED AS CONVEYANCE, TOUR AND TRAVEL OR EMPLOYEE WE L F A RE INSTEAD OF THE APPROPRIATE HEAD P ROVIDED U N DER SECTION 115WE OF THE ACT. CONSEQUENTLY, THE ASSESSING OFFICER HAS RECLASS IFIED THE EXPENSES OF RS. 10038 938/ - AND RS. 617372/ - INCURRED ON TOUR TRAVEL AND CONVEYANCE ON DOCTORS AS SALES PROMOTION EXPENSE S . THE CLAIM OF THE ASSESSEE T H AT EXP ENDITURE OF RS. 114396/ - FOR GIVING APPARATUS TO DOCTORS AS INCENTIVE TO DISTRIBUTOR WAS RECLASSIFIE D AS GIFTS TO DOCTORS BY T H E ASSESSING OFFICER. THE ASSESSING OFFICER HAS RECLASSIFIED THE EXPENDITURE OF RS. 615930/ - UNDER THE HEAD USING CLUB FACILITIES AGAINST THE CLAIM OF THE ASSESSEE THAT PAYMENT WAS MADE UNDER THE HEAD OTHER CLUB FACILITY FOR BOARDING AND LODGING . 4. AGGRIEVED ASSESSEE PREFERRED APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) HAS REJECTED THE APPEAL OF THE ASSESSEE BY OBSERVING AS UND ER: - 5. I HAVE GONE THROUGH THE ASSESSMENT ORDER AND SUBMISSIONS OF THE A.R. OF THE APPELLANT CAREFULLY. THE CONTENTION OF THE AR OF THE APPELLANT THAT THE TOUR AND TRAVEL EXPENSES OF THE DOCTORS HAD TO BE CLASSIFIED AS CONVEYANCE EXPENSES IS NOT CORRECT. THE DOCTORS ARE NOT EMPLOYEES OF THE APPELLANT. THE DOCTORS ONLY PROMOTE THE SALES OF THE APPELLANT BY PRESCRIBING THE MEDICINES MADE BY THE APPELLANT. ANY EXPENDITURE INCURRED FOR PROMOTING THE SALES OF MEDICINES HAS TO BE PROPERLY CLASSIFIED AS SALE PRO MOTION EXPENSES. IN VIEW OF THE ABOVE THE AO WAS JUSTIFIED IN RECLASSIFYING THE TOUR AND TRAVEL EXPENSES OF THE DOCTORS AS SALE PROMOTION EXPENSES. THIS CONTENTION OF THE APPELLANT IS REJECTED. 5.1 AS FAR AS THE EXPENSES ON THE TRAVELLING OF DIRECTORS OF THE COMPANY AMOUNTING TO RS.6,17,372/ - IS CONCERNED, IT IS SEEN THAT SUCH EXPENSES CANNOT BE CATEGORIZED AS SALE PROMOTION EXPENSES. THE MISTAKE HAS OCCURRED DUE TO TYPOGRAPHICAL MISTAKE WHEREBY INSTEAD OF DIRECTORS THE WORDS DOCTORS WAS WRITTEN. THE AO IS DIRECTED TO VERIFY WHE THER THE AMOUNT OF RS. 6,17,372/ - WAS SPENT ON THE TRAVELLING OF DOCTORS OR DIRECTORS. IF THE I.T.A NO. 1826 /AHD/20 14 A.Y. 2006 - 07 PAGE NO TROIKAA PHARMACEUTICAL LTD. VS. DCIT (OSD) 5 TRAVELLING EXPENSES WERE THAT OF THE DIRECTORS THEN THE SAME HAS TO BE CATEGORIZED AS CONVEYANCE AND TRAVELLING EXPENSES. 5.2 AS FAR AS THE EXPENSES INCURRED AT THE CLUB ARE CONCERNED, IT IS SEEN THAT THE EXPENSES WERE INCURRED AT CLUBS. IN VIEW OF THE ABOVE THE AO WAS JUSTIFIED IN TREATING THE SAME AS CLUB EXPENSES. 5.3 AS FAR AS THE EXPENSES ON THE PROVISIONS OF APPARATUS TO DOCTORS ARE CON CERNED, THE SAME CANNOT BE EQUATED WITH INCENTIVES GIVEN TO DISTRIBUTORS FOR MEETING TARGETS. THE COMPANY CANNOT SET TARGETS FOR THE DOCTORS AND BY NOT STRETCH OF IMAGINATION CAN THE DOCTORS BE SAID TO BE DISTRIBUTORS OF THE COMPANY. THUS THE CONTENTION OF THE APPELLANT IN THIS REGARD FAILS. 5.4 AS FAR AS THE PAYMENT FOR OTHER CLUB FACILITIES OF RS. 6,15,930/ - IS CONCERNED, THE AR OF THE APPELLANT HAS NOT FILED ANY EVIDENCE TO SHOW THAT THE PAYMENT WAS NOT FOR THE USE OF FACILITIES AT THE CLUB. IN VIEW OF T HE ABOVE THE ACTION OF THE AO IN TREA TING THE AMOUNT OF RS. 6,15,930/ - AS PAYMENT COVERED BY SECTION 115WB(2)(N) IS JUSTIFIED. THE CONTENTION OF THE APPELLANT, IN THIS REGARD, IS DISMISSED. 6. GROUND NO.III RELATES TO CHARGING OF INTEREST U/S 115 WJ AND 11 5WK OF THE ACT. THE LEVY OF INTEREST U/S 115 WJ AND 115WK OF THE ACT IS AKIN TO THE LEVY OF INTEREST U/S 234A, 234B AND 234C OF THE IT ACT 1961. THE LEVY OF INTEREST AS APPLICABLE IS MANDATORY. THE AO DOES NOT HAVE ANY DISCRETION WHETHER TO CHARGE INTERES T OR NOT UNDER THE AFORESAID SECTIONS. IN THE CASE OF ANJUM M H GHASWALA REPORTED IN 252 ITR 1 THE HON'BLE SUPREME COURT HAS HELD THAT THE CHARGING OF INTEREST AS APPLICABLE IS MANDATORY. IN THE CASE OF VINOD KHURANA V. CIT REPORTED IN 253 ITR 578 THE HONO RABLE PUNJAB & HARYANA HIGH COURT HAS HELD THAT CHARGING OF INTEREST AS APPLICABLE IS MANDATORY. THE SPECIAL BENCH OF THE ITAT DELHI IN THE CASE OF MOTOROLA INC V. DCIT REPORTED IN 95 ITD 269 HAS ALSO HELD THE SAME. THE AO WAS, THUS, DUTY BOUND TO LEVY INT EREST AS APPLICABLE. IN VIEW OF THE ABOVE THIS GROUND IS DISMISSED. 7. GROUND NO. IV RELATES TO INITIATION OF PENALTY PROCEEDINGS UNDER SECTION 271(1 )(D) OF THE I.T. ACT, 1961. NO APPEAL LIES AGAINST THE INITIATIO N OF PENALTY UNDER SECTION 271(1 )(C) OF THE I.T. ACT. APPEAL COULD ARISE ONLY WHEN PENALTY UNDER SECTION 271(1 )(D) IS LEVIED. IN VIEW OF THE ABOVE THIS GROUND IS DISMISSED. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD CAREFULLY. WE OBSERVE D THAT THE ASSESSIN G OFFICER HAS TAKEN INTO CONSIDERATION THE CBDT CIRCULAR NO.8 OF 2005 DATED 25TH OF AUGUST 2005 FOR RECLASSIFICATION OF EXPENSES FOR VALUATION OF FRINGE BENEFITS . FBT IN RESPECT OF SALES PROMOTION EXPENDITURE, CONVEYANCE, TOUR AND TRAVEL EXPENDITURE, FRING E BENEFIT TAX WAS INTRODUCED IN THE YEAR 2005 BY INSERTING CHAPTER XIIH TO THE INCOME TAX ACT. SUBSEQUENT TO THE INSERTION OF THE NEW CHAPTER, THE CBDT ISSUED AN CIRCULAR CLARIFYING THAT THE FBT IS LEVIABLE ON THE EXPENSES INCURRED BY THE EMPLOYER IN RESPE CT OF ENTERTAINMENT; PROVISION OF HOSPITALITY; CONFERENCE EXCLUDING THE FEE FROM PARTICIPATION BY THE EMPLOYEES IN I.T.A NO. 1826 /AHD/20 14 A.Y. 2006 - 07 PAGE NO TROIKAA PHARMACEUTICAL LTD. VS. DCIT (OSD) 6 ANY CONFERENCE; SALES PROMOTION INCLUDING PUBLICITY BUT EXCLUDING SPECIFIED EXPENDITURE ON ADVERTISEMENT; CONVEYANCE, TOUR AND TRAVEL (INCLUD ING FOREIGN TRAVEL); USE OF HOTEL, BOARDING AND LODGING FACILITIES; REPAIR, RUNNING (INCLUDING FUEL) AND MAINTENANCE OF MOTOR CARS AND THE AMOUNT OF DEPRECIATION THEREON; MAINTENANCE OF ANY ACCOMMODATION IN THE NATURE OF GUEST HOUSE OTHER THAN ACCOMMODATIO N USED FOR TRADING PURPOSES; FESTIVAL CELEBRATIONS; USE OF ANY OTHER CLUB FACILITIES, GIFTS AND SCHOLARSHIPS ETC. AS PER SECTION 115WB(1) OF THE INCOME TAX ACT THE EXPENSES INCURRED BY THE EMPLOYER, IN CONSIDERATION FOR EMPLOYMENT, FOR THE BENEFITS, SERVI CES ETC. AS MENTIONED UNDER CLAUSE (A) TO (D) OF HIS EMPLOYEES ARE LIABLE TO BE SUBJECTED TO THE FBT. THE WORDS CONSIDERATION FOR EMPLOYMENT , EMPLOYER , EMPLOYEE , EMPLOYEES HAVE BEEN REPEATEDLY MENTIONED NOT ONLY IN THE MAIN SECTION (SECTION 115WA) BUT ALSO IN EVERY CLAUSE OF SECTION 115WB(1) OF THE INCOME TAX ACT. ON PERUSAL OF ENTIRE SECTION 115WB(2) IT REVEALS THAT WHEREVER ANY BENEFIT IS DERIVED OUT TO THE EMPLOYEES, THE WORD EMPLOYEES HAS BEEN SPECIFICALLY USED. WHEREAS, THE EXPENDITURE AS MENTIONED UNDER OTHER HEADS I.E. MENTIONED IN CLAUSES (A) TO (D) OF SUBSECTION (2) OF SECTION 115WB, THE WORD EMPLOYEE HAS BEEN INTENTIONALLY OMITTED. RATHER THE WORD ANY PERSON HAS BEEN USED. IN VIEW OF THE ABOVE PROVISION THE ASSESSING OFFICER HAS RE CLASSIFIED THE EXPENSES IN RESPECT OF CONVEYANCE TO TOUR AND TRAVEL EXPENSES OF RS. 1,00,38,938/ - FOR DOCTORS UNDER THE HEAD OF SALE PROMOTION. T HE ASSESSING OFFICER OBSERVED THAT THE SAME IS COVERED I.T.A NO. 1826 /AHD/20 14 A.Y. 2006 - 07 PAGE NO TROIKAA PHARMACEUTICAL LTD. VS. DCIT (OSD) 7 U/S. 115(2)(D) AS PER CLASSIFICATION VIDE ANSWER TO Q UESTION NO. 67 OF CIRCULAR NO. 8 DATED 29 TH OCTOBER, 2005. W E OBSERVED THAT GENERALLY THE EXPENSES OF THE NATURE OF TOUR AND TRAVEL ARE INCURRED BY THE ASSESSEE FOR THE EMPLOYEES . I N THE CASE OF THE ASSESSEE , WE FIND THAT THE DOCTORS ARE NOT TH E EMP LOYEES OF THE ASSESSEE , HOWEVER, THE ASSESSEE HAS CLAIMED THESE EXPENSES INCURRED FOR THE PURPOSES OF ITS BUSINESS. WE OBSERVE THAT THE DOCTORS PLAY AN IMPORTANT ROLE IN PROMOTING THE SALE BY PRESCRIBING THE MEDICI N E S OF THE PHARMACEUTICALS C OM PANIES . AFTER CONSIDERING THE ABOVE FACTS AND THE DETAILED FINDINGS OF THE LD.CIT(A) AND THE PROVISION OF CLAUSES (A) TO (D) OF SUBSECTION (2) OF SECTION 115WB , WE JUSTIFY THE DECISION OF RECLASSIFYING THE TOUR AND TRAVEL EXPENSES OF THE DOCTORS AS SALE PROM OTION EXPENSES. THEREFORE, THE APPEAL OF THE ASSESSEE ON THIS ISSUE IS DISMISSED. AS REGARDS, THE DOCTOR S FOREIGN TRAVEL EXPENSES OF RS. 6,17,372/ - WHICH WAS RECLASSIFIED BY THE ASSESSING OFFICER UNDER THE SALE PROMOTION, THE ASSESSEEE HAS SUBMITTED THAT DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE COMPANY HAS INCURRED THESE EXPENSES ON FOREIGN TRAVELLING OF DIRECTORS AND NOT DOCTORS. THE MISTAKE HAS OCCURRED DUE TO TYPOGRAPHICAL MISTAKE WHEREBY INSTEAD OF DIRECTORS THE WORDS DOCTORS WAS WRITTEN. WE OBSERVED THAT THE LD.CIT(A) HAS ALREADY DIRECTED THE AO TO VERIFY WHETHER THE AMOUNT OF RS. 6,17,372/ - WAS SPENT ON THE TRAVELLING OF DOCTORS OR DIRECTORS. THEREFORE, WE DO NOT FIND ANY REASON TO INTERFERE IN THE DECISION OF THE LD. CIT(A). WE ARE ALSO INCLINED WITH THE DECISION OF THE LD. CIT(A) THAT EXPENSES ON THE PROVISIONS OF APPARATUS TO DOCTORS CANNOT BE I.T.A NO. 1826 /AHD/20 14 A.Y. 2006 - 07 PAGE NO TROIKAA PHARMACEUTICAL LTD. VS. DCIT (OSD) 8 EQUATED WITH INCENTIVES GIVEN TO DISTRIBUTORS FOR MEETING TARGETS BECAUSE THE DOCTORS ARE NOT THE DISTRIBUTORS OF THE COMPANY . THEREFORE , THE AP PEAL OF THE ASSESSEE IS DISMISSED ON THIS ISSUE. AS REGARDS, THE RECLASSIFICATION OF EXPENDITURE OF RS. 6,15,930/ - UNDER THE HEAD STAFF WELFARE, THE ASESSEE HAS STATED THAT THIS PAYMENT WAS MADE UNDER THE HEAD OTHER CLUB FACILITY FOR BOARDING AND LODGIN G AND NOT FOR USING CLUB FACILITIES. WE HAVE NOTICED THAT NEITHER THE ASSESSEE HAS FILED ANY EVIDENCE BEFORE THE LD. CIT (A) NOR BEFORE US TO DEMONSTRATE THAT IT HAD INCURRED THE AFORESAID EXPENSES FOR BOARDING AND LODGING AND NOT FOR USING CLUB FACILITI ES. THEREFORE, THE APPEAL OF THE ASSESSEE IS DISMISSED ON THIS ISSUE. 6. IN THE RESULT , THE APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 07 - 12 - 201 7 SD/ - SD/ - ( RAJPAL YADAV ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 07 /12 /2017 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,