9911796707
TMI Blog2014 (2) TMI 553X X X X Extracts X X X X X X X X Extracts X X X X ..... – it was disproved by the assessee by placing the percentage of expenditure incurred in the form of payments to Government Departments etc., to highlight that the composition of payments made to the sister concerns was a meager percentage of the total outgo - the tax authorities have not made out a strong case to make the addition – Decided against Revenue. - ITA No. 989/Hyd/2013 - - - Dated:- 3-2-2014 - Shri D. Manmohan And Shri B. Ramakotaiah,JJ. For the Appellant : Smt. K. Haritha DR For the Respondent : Shri S. Rama Rao ORDER Per D.Manmohan, Vice President: This appeal by the Revenue is directed against the order of the Commissioner of Income-tax(Appeals) V, Hyderabad, dated 28.2.2013 for the assessment year 2005-0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... called for. Vide remand report dated 17.9.2012, the Assessing Officer pointed out that there was inflation of expenditure in respect of services charges paid to M/s. Indra Marketing Agencies , M/s. Sri Marketing Finance, etc. In the opinion of the Assessing Officer, it is a fit case for enhancing the disallowance, since the expenditure shown to have been incurred by the assessee is excessive and it is not allowable under S.37 of the Act. 6. The remand report was forwarded to the assessee for its comments. In response thereto, the assessee submitted that the amounts paid to M/s. Indra Marketing Agencies, etc. was reflected in their income-tax returns, and they were accordingly assessed to tax in the scrutiny proceedings. In support ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that the addition made on ad-hoc basis is merely based on assumptions, since the assessee furnished full details alongwith supporting vouchers and in fact, the recipients have offered the same to tax and also assessed as such in the scrutiny proceedings. 10. We have heard the rival submissions and perused the material on record. The Learned Departmental Representative was unable to place any material on record to contradict the findings of the CIT(A). It is not in dispute that the recipients have rendered services and payments are made to them, which were reflected in their income-tax returns. The Assessing Officer has not pointed out any specific defects in the books of account, except making general remarks that the expenditure is e ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
