9911796707
TMI Blog2020 (8) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... ssession of the correct address of Google India. The assessee has duly furnished the addresses. When there was no response, the assessing officer could very well have issued the summons under section 131. Without issuing any summon to the concerned parties the ignorance of all the documentary evidence for the payment and its genuineness is not at all sustainable. The disallowance is based upon surmise and conjecture. CIT(A) has not applied any mind. He has copied the order of the assessing officer and thereafter virtually dismissed the appeal for non-prosecution. Such an order is not at all legally sustainable. As regards the lack of evidence is concerned, when there are invoices and books of account, what else is required has not been s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subscription, online sales and direct marketing. The assessing officer made disallowance of sales promotion expenses on the ground that the parties to whom the payments have been made have not responded to his notice issued under section 133 (6) of the I.T. Act. The assessing officer did not issue any summon under section 131 to these parties. No other cogent reason was given by the assessing officer except that assessee has not been able to produce these parties. Assessee in this regard submitted the invoices. The payments were made through banking channels. The invoices duly contained the sales tax registration No. of the parties. No infirmity in this regard was pointed out by the assessing officer. The order of the assessing officer in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee had shown more expenses to the tune of ₹ 9,78,169/-. In this situation, the assessee was asked to produce the parties and to reconcile the difference of ₹ 9,78,169/- in respect of party at Sr.No.2 and to show cause as to why the said amounts should not be disallowed in case of failure on the part of the assessee. In response, assessee vide letter dated 21/11/2016 has submitted as under:- Our client has received your above referred notice asking to provide reconciliation between our books of account arid the copy of the account submitted by the party named Coco's Cart for the amount of ₹ 9,78,169/- in respect of Sales Promotion Expenses incurred during the said assessment year. In response to the same, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at in some cases the payment to said company is made by group company of assessee, but no evidence in this respect has been submitted. Hence, as the .assessee has not been able to reconcile the difference in the expenses with regard to Coco's Cart the amount of ₹ 9,78,169/- is hereby disallowed. The expenses in respect of the other four parties are also disallowed as assessee has not been able to submit any confirmation or produce the parties in spite of specific direction to do so. Hence, the said expenses cannot be said to have been proved by the assessee. Accordingly, the Sales Promotion Expenses to the tune of ₹ 82,52,648/- (1172289 +978169 + 1549446 + 810230 +3742514) is hereby disallowed and added back to the total inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missed and disallowance made by AO is confirmed. 5. We find that the CIT(A) has not applied any mind. He has copied the order of the assessing officer and thereafter virtually dismissed the appeal for non-prosecution. Such an order is not at all legally sustainable. As regards the lack of evidence is concerned, when there are invoices and books of account, what else is required has not been spelt out by learned CIT(A). He has not at all referred that the Assessing Officer was actually looking for the assessee to produce these parties. An appellate order showing such lack of application of mind is not sustainable. 6. In the background of aforesaid discussion in our considered opinion the orders of authorities below are not sustainab ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
