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TMI Blog2019 (1) TMI 470X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the course of proceedings before the authorities below, such evidence could be now furnished to the AO, we are of the considered opinion that the ends of justice would meet adequately if the impugned order on this score is set-aside and the matter is restored to the file of AO. We order accordingly and direct the AO to examine the assessee’s claim in respect of evidence of services. In case, the assessee still fails to furnish the evidence to the satisfaction of the AO, the Assessing Authority would be fully justified in making addition - Appeal allowed for statistical purposes. Addition of reimbursements to related parties u/s. 40(a)(ia) - Held that:- We find that the addition sustained by the CIT(A) is in respect of certain items ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xamine the assessee’s claim along with the evidence afresh. In the given facts and circumstances of the case, we are of the considered opinion that it would be just and fair if the impugned order on this score is set-aside the matter is restored to the file of AO. We order accordingly and direct him to decide this issue afresh as per law - Appeal allowed for statistical purposes. - ITA No.2563 And 2564/PUN/17 - - - Dated:- 8-1-2019 - SHRI R.S. SYAL, VICE PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER For The Appellant : Shri Abhay Avchat For The Respondent : Shri Rajesh Gawali ORDER PER R.S.SYAL, VP : These two appeals by the assessee relate to the assessment years 2009-10 and 2011-12. For the sake of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the company. The ld. CIT(A) did not change the position. 5. Having heard both the sides and gone through the relevant material on record, it is seen that the assessee claimed to have availed services from TACO and in lieu of that paid ASA charges. The nature of services stated by the assessee before the authorities below is Human Resources ; Marketing and Sales ; Finance ; Legal and Taxation ; and IT support etc. It is a fundamental rule that a deduction can be allowed towards service fees if the assessee proves the receipt of services from the service provider. If there is no evidence of services, there can be no deduction in respect of such payment. We have perused the nature of services being Human Resources - Recruitment, Tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring of services by TACO, the AO should take into consideration only such evidence which is relevant for the instant payment in as much as there is some other payment to TACO also, which is the subject matter of the next ground of appeal, vide which disallowance of ₹ 5,19,424/- was made by the AO u/s.40(a)(ia) of the Act. 8. The next ground is against the confirmation of addition of ₹ 4,14,207/- out of reimbursements to related parties u/s. 40(a)(ia) of the Act. 9. The facts of this ground are that the assessee claimed deduction for a sum of ₹ 5,19,424/- under the head Reimbursement of expenses paid to TACO. These payments were over and above the Administrative Service Charges paid to TACO. The assessee was called ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the considered opinion that it would be in the fitness of things if the impugned order on this score is set-aside and the matter is restored to the file of AO. We order accordingly and direct him to decide the issue afresh as per law after allowing reasonable opportunity of hearing to the assessee. 11. In the result, the appeal is allowed for statistical purposes. A.Y. 2011-12 : 12. The only effective issue raised in this appeal is against the confirmation of disallowance of expenditure towards interest to bank amounting to ₹ 25,52,010/- u/s.43B of the Act. 13. The facts concerning this issue are that the assessee debited a sum of ₹ 25,52,009/- on account of interest payment to Indian Bank. On being called upon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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