Sec. 92B, 92C & 37(1) of Income-tax Act, 1961— Business Expenditure - During the course of assessment proceedings, it was noted that assessee had incurred certain expenses for its liaison office at Sri Lanka. On enquiry as to why the same should not be disallowed under s. 37(1), the assessee responded that assessee was earlier receiving some consideration from an independent Co ID Lanka Ltd. for the services rendered by it. However, for asst. yr. 2009-10 and asst. yr. 2010-11, no income was earned through the LO. The AO disallowed the same on the ground that assessee had not carried out any business activity in Sri Lanka or received any income from Sri Lanka. The DRP also rejected the objection by the assessee by following its earlier year order. Tribunal dismissed the appeal of the revenue holding that ”It is undisputed that during the current year as well as previous year no income was received on account of activities of the LO. No detail for the activities conducted by the LO is also on record. In the earlier year also this claim was rejected“. - DIAGEO INDIA (P) LTD. V/s ASSTT. CIT - [2020] 182 ITD 362 (ITAT-MUMBAI)