Disallowance of consultancy fees was examined on whether the...

Disallowance of consultancy fees was examined on whether the expenditure could be rejected solely on perceived documentation inconsistencies and uncorroborated third-party survey inputs. The addition was held unsustainable because the revenue produced no cogent material showing invoices were bogus, services were not rendered or commensurate, or payments were excessive or routed back in cash, and no incriminating survey material was confronted to the taxpayer. Mere third-party information and suspicion could not substitute proof once primary evidence (agreements, invoices, banking trail, TDS) was furnished and the burden shifted to the revenue. The deletion of the addition was upheld and the revenue's appeal was dismissed. - ITAT