2010 (9) TMI 587

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..... y the assessee gets relief on this issue During the course of proceedings, the assesse has filed certain additional evidences which could not be filed before the authorities below - In the result, the appeal is partly allowed for statistical purpose
Pramod Kumar, Asha Vijayraghavan, JJ. Appellant Rep by: Shri Nitesh Joshi Respondent Rep by: Shri S K Mahapatra ORDER Per: Pramod Kumar: 1. This is an appeal filed by the assessee and is directed against the order dated 24th March 2009 passed by the CIT(A) in the matter of assessment under section 143(3) of the Income Tax Act, 1961, for the assessment year 2005-06. 2. In the first ground of appeal, the assessee is aggrieved of CIT(A)'s upholding the disallowance of Rs 77,9854 by ap .....

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..... such services. That is not even revenue's case before us. The case of the revenue is that the assessee did not make adequate profits in transactions with the sister concern, but then this aspect of the matter is not at all relevant to disallowance under section 40A(2)(b). In this view of the matter, and following the view taken by a coordinate bench in the case of Batlivala & Karnani Vs ACIT (2 SOT 379), we direct the Assessing Officer to delete the impugned disallowance. The assessee gets relief on this issue. 5. Ground No 1 is thus allowed. 6. In ground no. 2, the assessee is aggrieved of CIT(A)'s upholding the disallowance of Rs 17,16,367 in respect of amounts due from employees written off. 7. In the course of assessment proceedin .....

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..... al evidences filed by the assesse, by way of a speaking order and in accordance with the law. 9. The same is the position with regard to assessee's grievance against CIT(A)'s upholding the disallowance of Rs 30,08,437 on account of sundry balances and advances written off. On this issue also, the disallowance has been made, and sustained, mainly for want of suitable explanations of the assessee and inability to file requisitioned evidences. Once again the assessee has filed additional evidences to meet the objections taken by the authorities below. On this issue also, and consistent with the stand taken above, we deem it fit and proper to remit the matter to the file of the CIT(A) for fresh adjudication on merits, after taking into accoun .....

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