9911796707
TMI Blog2012 (9) TMI 762X X X X Extracts X X X X X X X X Extracts X X X X ..... vailability of agreement is one corroborative factor which would eliminate the doubts, but in the absence of that agreement, the other circumstances ought to have been evaluated, which can goad the adjudicating authority towards a firm conclusion. CIT(A) order of deleting dis-allowance upheld Notional interest on Interest free advances - addition - Held that:- CIT(A) rightly deleted the addition on observation that assessee has not claimed any interest expenditure in the P/L A/c, therefore, no interest bearing funds were given to the parties without charging any interest. Dis-allowance of payments made for delay in filing the various statutory returns with ROC on ground of it being penal - Held that:- Payments made by assessee on acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has claimed professional charges of Rs. 12,00,000/- paid to M/s Dayal Securities Pvt. Ltd. The Ld. Assessing Officer directed the assessee to explain nature of services rendered by M/s Dayal Securities Pvt. Ltd., the name of Department with location, where such services were rendered and also submit copy agreement/ letter indicating the payment to M/s Dayal Securities Pvt. Ltd. for rendering such services. The Assessing Officer also directed the assessee to submit address of branch office of M/s Dayal Securities Pvt. Ltd. at the place where the services were rendered. In response to the query of Assessing Officer, the assessee has submitted letters dated 16-08-2010 and 17-11-2010. It was contended by the assessee that it has procured co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the works obtained from M/s Crompton Greaves etc. Had the assessee failed to get the work done through M/s Dayal Securities Pvt. Ltd. It would spoiled business relations with these entities. In the next assessment year, the assessee company has received contract of more than Rs. 18.20 lacs from M/s Crompton Greaves Company. If it fails to execute the job in this year than in the subsequent year, it would not get any work. The Ld. CIT(A) on an appreciation of the circumstances deleted the disallowance. 6. Before us, Ld. DR submitted that assessee fail to bring any evidence indicating the nature of services rendered by M/s Dayal Securities Pvt. Ltd.. Therefore, Assessing Officer has rightly disallowed the commission payments. On the othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee is in respect of supply of 267 no of 11 KV panel, whereas in the bill raised by M/s Dayal Securities Pvt. Ltd. The nature of work mentioned is management consultancy charges. Ld. Counsel for the assessee gave a clarification that the work was not for supply of any items rather it was erections of certain platforms where supply of 11 KV panel can be installed. In both the bills contract no is same. On an analysis of these bills, we are of the view that if assessee has received certain receipts for performance of any work than only the net amount can be recognized its revenue. The assessee has not shown expenditure for the performance of this work, rather according to it, the work was assigned to M/s Dayal Securities Pvt. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his addition has been made by the Assessing Officer on the ground that assessee had given advances to various parties from whom it has not charged any interest. According to the Assessing Officer, the assessee ought to have charged interest, therefore on a presumption basis, he assessed the income which ought to have been earned by assessee. The Ld. CIT(A) has observed that assessee has not claimed any interest expenditure in the profit and loss account, therefore, no interest bearing funds were given to the parties without charging any interest. On due consideration of this finding, we are of the view that assessee cannot be forced to earn income. Had it claimed expenditure in the nature of interest than at the most those expenses could ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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