TaxTMI 
TaxTMI 
2012 (9) TMI 762
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....icer by disallowing the professional charges paid to M/s Dayal Securities. 2. The brief facts of the case are that assessee company has filed its return of income on 07-02-2009 declaring an income of Rs. 2,450/-. The case of the assessee was selected for scrutiny of assessment and a notice u/s 143(2) of the Income Tax Act, 1961, was issued and served upon the assessee. Shri. M.P.Gupta, CA and Shri. S.R.Batra, Director of the assessee company appeared before the Assessing Officer and filed the details called for. On an analysis of the record, it revealed to the Assessing Officer that assessee has declared professional receipts amounting to Rs. 13,17,733/-. Against this professional receipt, the assessee has claimed professional charges of Rs....
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....ities Pvt. Ltd. It reveals that there are few transactions in a year, whereby the cheques were deposited and the amounts were withdrawn immediately within the two three days. The Assessing Officer has doubted the story put forth by the assessee and he disallowed the alleged claim of expenses of Rs. 12 lacs/- paid to M/s Dayal Securities Pvt. Ltd. 4. Dissatisfied with the action of the Assessing Officer, assessee carried the matter in appeal before Ld. CIT(A). It contended that M/s Dayal Securities Pvt. Ltd. has raised the bill. It has made the payment through A/c Payee cheque after deduction of TDS. The Directors were facing problems and therefore the assessee company was not in a position to complete the works obtained from M/s Crompton....
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.... before us is whether from the circumstances, it emerged that assessee has assigned the work to M/s Dayal Securities Pvt. Ltd. and paid charges. In order to ascertain the position, we have perused the bills raised by the assessee upon M/s Crompton & Greaves. In the bills, the assessee has mentioned that please release part payment of our agreed serve charges towards execution of PO no- DH510/2333/EXN/MM-1 for supply of 267 no of 11 KV panel for DHBVN. Thereafter, the details of the amount has been given. The bill raised by M/s Dayal Securities Pvt. Ltd. is available on page 72 of the paper book. This bill contains the same work contract no. At the time of hearing, Ld. DR pointed out that the bill raised by the assessee is in respect of s....
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....uce agreement executed between the assessee and M/s Dayal Securities Pvt. Ltd. To our mind, availability of that agreement is one corroborative factor which would eliminate the doubts, but in the absence of that agreement, the other circumstances ought to have been evaluated, which can goad the adjudicating authority towards a firm conclusion. Considering the circumstantial evidence and the conclusions drawn by the CIT(A), we do not see any reason to interfere in the order of Ld. CIT(A) on this issue. 9. In ground no. 03, the grievance of revenue is that Ld. CIT(A) has erred in deleting the addition of Rs. 2,68,570/-. With the assistance of Ld. CIT(A) representative, we have gone through the record carefully. This addition has been made ....