2003 (1) TMI 268

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.... is carrying on its business inIndiathrough a project office situated at 630, Maruti Mani Block,AsianGamesVillage,New Delhi. The assessee-company entered into a contract on 15th April, 1985, with another non-resident foreign company M/s GEC Turbine Generators India Ltd. (GECTGIL) for all the work to be performed in India for the setting up of coal-based thermal power plant at Korba as a captive power station for BALCO's aluminimum complex on turnkey basis. A search and seizure operation was conducted at the premises of M/s GECTGIL. During the search, certain pay slips were found and seized by the Department. On a later stage the search was also conducted at the premises of the assessee. However, no incriminating documents were found during ....

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....it was further submitted that neither the pay slips were shown to the assessee, nor any other material was brought on record, which could establish that the assessee has not recorded expenditure incurred by it. Alternatively, it was submitted that assuming that assessee has incurred any expenditure on salary, that expenditure has to be allowed as business expenditure. The CIT(A), after considering the submissions and perusing the order material on record, was of the view that AO was justified in making the additions. While observing so, the CIT(A) has observed in his order that even when an incriminating document or evidence is found by the AO elsewhere, the same becomes relevant and can be relied. Therefore, the documentary material found ....

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....of the years. It was further submitted that the assessee itself has written to the AO for so many times to supply the copies of the slips found from the premises of the third party. Attention of the Bench was invited on the copies of the appications filed before the AO, which are placed in the paper book at pp. 12 to 15. The attention of the Bench was also drawn on copies of account of salaries paid by the assessee to the expatriates and it was submitted that all the salaries were paid through account payee cheques to these expatriates. Further, the contentions raised before the lower authorities were reiterated. 6. On the other hand, the learned Departmental Representative placed reliance on the orders of the authorities below. 7. We....