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TMI Blog2017 (5) TMI 263X X X X Extracts X X X X X X X X Extracts X X X X ..... us under this Income Tax Appeal are as follows:- "1. Whether the finding of the Tribunal that amount paid to M/s. Singhal Resources and Marketing Pvt. Ltd. and M/s. Mewar Security Services Pvt. Ltd. is possibly a device to raise capital of the concerned associates of the assessee firm, for substaining additions made by the Assessing Officer, are finding based on conjectures and surmises when actual payment having been made to two registered companies by the assessee firm was not even in doubt? 2. Whether the extent of any expenses to be incurred for expanding business is within the domain of the assessee running business or is in the domain of Assessing Officer." The factual matrix, necessary to be noticed to examine the questions f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... os. Accordingly, in view of the decisions of under mentioned cases, I hold that the A.O was not justified in making the disallowance of interest only on the basis of presumption and assumption. I, therefore, delete the addition made by the AO amounting to Rs. 1,63,620." Aggrieved by the order dated 9.4.1999 the revenue preferred an appeal before the Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur that came to be accepted in part under order dated 26.2.2004. The Tribunal held that the assessee failed to point out any service having been rendered by the associate company to the assessee firm during the relevant period sufficient to infer even impliedly that the services at all were given. The discussion made by the Tribunal in this re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e partners of the other company definitely increased although the tax was paid at maximum marginal rate. So, it can be a device to raise the capital of those concerned persons. What is required by the assessee to prove is that the services were rendered. The assessee was required to prove that actually such and such services were rendered by the company in question. But the ld. AR could not point out to any evidence on record wherefore it could be inferred that the service in that respect was rendered by the company. The ld. AR has been beating about the bush by submitting that the department has not disputed the agreement in question. The department has not denied the payments through cheques. So the findings of the Assessing Officer are n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly argument advanced before us is that the Tribunal failed to appreciate the material available on record establishing that the services were actually rendered by M/s. Singhal Resources and Marketing Pvt. Ltd. entitling it to claim service charges from the appellant firm. Per contra, Shri K.K.Bissa, learned counsel appearing on behalf of the revenue, submits that the Income Tax Appellate Tribunal has considered each and every aspect of the matter and then gave a finding of fact which is not required to be interfered by this Court in its appellate jurisdiction. It is asserted that the questions formulated by the Court are not even substantial questions of law and this Court even at this stage may dismiss the appeal by holding that same do ..... X X X X Extracts X X X X X X X X Extracts X X X X
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