9911796707
TMI Blog2016 (9) TMI 750X X X X Extracts X X X X X X X X Extracts X X X X ..... nditure in question should not be disallowed on the basis of statements of somebody in proceedings before EOW. Moreover, there is nothing on record that the proceedings of EOW were confronted to the assessee in this regard in any manner. Sequence of the facts show that assessee made payment to Eureka Corporation, which was fraudulently cornered by Shri Piyush Chheda and other. As stated above, for the same, Dilip Mehta of M/s. Eureka Corporation filed a complaint for recovery of the amount in question. It shows that Dilip Mehta of M/s. Eureka Corporation has no grievances against assessee. So, the expenditure in question should not be disallowed in the hands of assessee, irrespective of the fact that same has been fraudulently cornered by s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of the Learned Assessing Officer in confirming the additions of ₹ 8,53,910/- on account of Bogus Expenditure disallowed based on the investigations done by EOW, where as details available on the records shows proper care was taken at the time of payment and the Learned Assessing Officer has relied only on the findings of EOW. 2) The Learned Commissioner of Income Tax (Appeal) - 5, Mumbai has erred in confirming the action of the Learned Assessing Officer even known the fact that Shri Piyush Chheda was arrested and released on the bail, and these statements were recorded by EOW, which has no relevant on the our Company as we have given these cheques to M/s Eureka Corporation (Prop Dilip Mehta), which was fraudulently enchased b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total 1 Piyush Chheda 180682 119755 300437 2 Eureka Corporation 632765 632765 3 Dhaval Naik 356208 101390 457598 Total 536890 853910 13,90,800 In appeal, this addition was confirmed by CIT(A). 2.1 Assessee reiterated the submissions made before the authorities below and submitted that expenditure in question at the hand of assessee was genuine, so, same should be allowed. On the other hand, ld. Departmental Representative supported the orders of authorities below. 2.2 After going through rival submissions and perused the material on record, we find that assessee is engaged business of services related to Shipping Agent/Multimodal Transport Operator/International Freight forwarding Agents. Assessee's sales person canvas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s expenditure. Even commission was due/paid and payable to Eureka Corporation. However, these cheques issued to Eureka Corporation were fraudulently encashed by Piyush Chedda and Minal Piyush Chedda. It does not change the colour of liability in the hands of assessee. There is nothing on record to suggest that assessee had not incurred this expenditure in lieu of services rendered to it. There is connivance of assessee in fraudulent diversion of the amount to fraudulent persons instead of Eureka Corporation. Assessee has claimed the expenditure as it has shown and cheques were issued in the name of Eureka corporation against services rendered by it. Irrespective of the fact that same has not reached destination in spite of their usual mode ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by assessee for the business purpose. So, same should not be disallowed for reasons discussed above. Accordingly, these amounts in question are directed to be allowed. 2.3 As a result, appeal filed by assessee for A.Y. 2004-05 is allowed. 3. In ITA No.7027/Mum/2011 for A.Y. 2003-04, assessee has filed appeal on following grounds: "1) The Learned Commissioner of Income Tax (Appeal) - 5, Mumbai has erred in confirming the action of the Learned Assessing Officer in confirming the additions of ₹ 5,36,890/- on account of Bogus Expenditure disallowed based on the investigations done by EOW, where as details available on the records shows proper care was taken at the time of payment and the Learned Assessing Officer has relied only on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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