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The Tax Publishers Volkart Fleming Shipping & Services Ltd. v. ACIT [ITA No. 3481/Mum/2013, dt. 11-5-2016] : 2016 TaxPub(DT) 2464 (Mum-Trib) Existence of business income whether factually correct *Facts:* Assessee was in the shipping line business, arising out of a de-merger of shipping business to Forbes & co. Ltd. had filed a revised return which was taken into scrutiny and assessment completed with only income from house property and income from other sources. Business loss was disallowed along with expenses on premise that the same were billing done to group parent for realty and professional consultancy charges. On querying, assessee took stand that 6 of its employees were offering services to the group parent for such consulting and thus expenditure was also claimed on such business consultancy arising of the revenue reimbursed from the group parent Forbes & Co. Ltd. assessing officer and Commissioner (Appeals) upheld the disallowance of business loss and the expense that the entire income was made up only on estimated basis so as to enable claim of business expenses which otherwise would have not been allowable on house property/income from other sources. Aggrieved assessee went in appeal. Held against the assessee that the business loss and the expenses were not controverted with any proper carrying of business or evidences pointing to the same.

The Tax Publishers

Volkart Fleming Shipping & Services Ltd. v. ACIT [ITA No. 3481/Mum/2013, dt. 11-5-2016] : 2016 TaxPub(DT) 2464 (Mum-Trib)

Existence of business income whether factually correct

Facts:

Assessee was in the shipping line business, arising out of a de-merger of shipping business to Forbes & co. Ltd. had filed a revised return which was taken into scrutiny and assessment completed with only income from house property and income from other sources. Business loss was disallowed along with expenses on premise that the same were billing done to group parent for realty and professional consultancy charges. On querying, assessee took stand that 6 of its employees were offering services to the group parent for such consulting and thus expenditure was also claimed on such business consultancy arising of the revenue reimbursed from the group parent Forbes & Co. Ltd. assessing officer and Commissioner (Appeals) upheld the disallowance of business loss and the expense that the entire income was made up only on estimated basis so as to enable claim of business expenses which otherwise would have not been allowable on house property/income from other sources. Aggrieved assessee went in appeal.

Held against the assessee that the business loss and the expenses were not controverted with any proper carrying of business or evidences pointing to the same.