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TMI Blog2014 (3) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... stance of cash payment without availability of cash on the stipulate date - the addition made by the AO under section 69C has no legs to stand – there was no infirmity in the order passed by the CIT(A) – Decided against Revenue. - ITA No. 4222/Mum/2011 - - - Dated:- 27-2-2014 - Shri D. Manmohan And Shri N. K. Billaiya,JJ. For the Appellant : Shri R. K. Sahu For the Respondent : Shri Bhupendra Shah ORDER Per D. Manmohan, V. P. This appeal by the Revenue is directed against the order dated 09.03.2011 passed by the CIT(A)-23, Mumbai and it pertains to A.Y. 2007-08. 2. Following grounds were urged by the Revenue before us: - 1. On the facts and in the circumstances of the case and in law, the ld. CIT(A) has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 36,46,196/- Ram Krishna Rs. 2,92,714/- Prominent Tower Rs. 5,27,000/- Total Rs. 46,01,494/- Against the said receipts it claimed deduction of Rs. 36,72,373/- towards expenses resulting in a net profit of Rs. 9,29,121/-. In the P L Account the assessee had also shown income in the form of reimbursement, to the tune of Rs. 1,55,75,015/-, which was stated to have been incurred by him originally and reimbursed by the clients. 4. The AO noticed from the cash book that the assessee had incurred expenditure towards staff welfare, salary, telephone, etc. apart from expenditure incurred for obtaining visa, etc. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of payment, particularly in cash, etc. The specimen contract with the American Express Travel related services shows that Royal Services (the appellant herein) will provide passport and visa services to them for which the assessee will be paid @ Rs. 250/- per transaction as consolidated cost of services for the first 500 transactions and for any incremental transactions @ Rs. 150/- per transaction. Monthwise brake up of the payment by cash, payment by cheque/pay order, etc. was also furnished. Based on the said details the learned CIT(A) called for a remand report of the AO, who has objected to the correctness of the claim on the ground that visa fees payable by the appellant was for the current financial year 2009-10/2008-09 and not for 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that paid by cheque/pay order totalled Rs. 87,53.515/- The datewise details of visa fees payment in cash and by cheque/pay order were also furnished. 8. Having regard to the material placed before him, including the remand report, the learned CIT(A) concluded that no case was made out by the AO to make the impugned addition. In this regard he observed, vide para 4.5 of his order, as under: - 4.5 The appellant had filed a summary statement of visa fees paid during the year giving break up of payments by cash and cheque, in which monthwise details were given. A statement showing payment of visa fees on daily basis was also furnished for the entire year. During the appellate proceedings, the appellant was asked to produce original vouc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Authority has called for a remand report and had taken into consideration the remand report and also the additional evidence. He further contended that the assessee proved to the hilt that these are mere reimbursements. In fact, it is not the case of the AO that on a particular date there was no cash availability with the assessee as against the payments made. Reimbursements were recorded on the last day of the year but the fact remains that the expenditure was incurred on different dates. He also submitted that as per the standard practice followed by the travel agents expenditure is incurred on the date when visa fees is paid and in most of the cases the payment is received from the clients on that date. There is no evidence on record t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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