9911796707
TMI Blog2018 (4) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... o time. It was not possible to assessee to produce them before the A.O. that too without giving any show cause notice in this regard. It is, therefore, clear that findings of the A.O. are merely based on doubts, surmises and conjectures without bringing any concrete material against the assessee. The professional charges have been incurred wholly and exclusively for the purpose of business of assessee. Therefore, there is nothing wrong in the order of the Ld. CIT(A) in deleting the addition - Decided against revenue - ITA. No. 5914/Del./2014 - - - Dated:- 3-4-2018 - Shri Bhavnesh Saini, Judicial Member And Shri L. P. Sahu, Accountant Member For Revenue : Shri Kaushlendra Tiwari, Sr.DR For Assessee : Shri S.N. Nanda, C.A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t professional charges are paid to different persons and they do not come continuously. Therefore, such persons could not be produced in the absence of any residential address of the agents. The A.O. however, noted that it is not possible that 80 to 90 professionals come to receive professional charges on different dates and that too in cash. The explanation of assessee was rejected and addition of ₹ 35,97,470/- was made to the returned income. 3. The assessee challenged the addition before the Ld. CIT(A) and it was submitted that A.O. made a mistake in holding that assessee had not made any payment of professional charges or that all professional charges had been paid in cash without realizing that the payment of professional char ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made to various temporary professional staff by cheque drawn on Union Bank of India, which is supported by copy of the bank statement. The accounts of the assessee were duly audited and all facts were verified from the record. The Ld. CIT(A) considering the explanation of assessee and material on record, deleted the addition. His findings in para 4.3 of the order is reproduced as under : 4.3. I have carefully considered the assessment order, the reasons given by the AO for making an addition of professional charges amounting to ₹ 35,97,470/- and the submissions and arguments of the Id. AR. I have also perused the assessment records very carefully. I find that the original assessment u/s. 143(3) was framed vide order dt. 24.11.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to ₹ 30,06,212/-. It is only the temporary data entry operators, who have been paid professional charges amounting to ₹ 35,97,470/-. I also find that the reasoning given by the AO is more in the nature of doubts and suspicions raised by him with regard to the professional charges. Nothing prevented him from probing further to establish the veracity of the claims made by the appellant. He has chosen not to do so and has made the addition of all the professional charges debited to the P L A/c. on doubts and suspicions, conjectures and surmises. Such half baked additions do not stand the test of judicial scrutiny. Keeping in view the facts of the case, the documents on record and the arguments of the Id. AR, I hereby delete the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idering the finding of fact recorded by the Ld. CIT(A), which is not rebutted through any evidence or material on record, it is clear that assessee was providing full range of I.T./B.P.O services to multinational consulting organisations and earned of the professional income of assessee at ₹ 1.62 crores, the assessee would not have earned such income without engaging professional staff. The Ld. CIT(A), on verification of the record, found that the amount in question is paid to temporary data entry operators. It would support the explanation of assessee that small amount was paid to different data entry operators at different times, which were below the prescribed limit for deduction of TDS. So, there is nothing wrong in the explanatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
