2014 (1) TMI 1594

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....ITH MR B S SOPARKAR, ADVOCATE ORDER (PER : HONOURABLE MS JUSTICE SONIA GOKANI) Following substantial question of law has been proposed for our consideration in this Tax Appeal:          "Whether the Appellate Tribunal is right in law and on facts in considering the consultancy charges of Rs.65 lacs as incurred for the purpose of business in absen....

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....arty responded to the same stating that no work had been done by N.M.Consultants. The assessee had declared loss of Rs.78,60,41,250/-. After making disallowance to the tune of Rs.65 lacs. loss was assessed by the Assessing Officer. CIT (A) deleted such additions by cogent reasons:          "5.4 I have considered the submissions of the A.R. carefully. I....

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.... disallowance made by the A.O. is deleted. When the issue travelled to the Tribunal, it extensively dealt with the issue and concluded in favour of the assessee. It would be profitable to reproduce some of the relevant observations made by the Tribunal:          "12. Now we examine the applicability of the judgment of Hon'ble Gujarat High Court cited b....

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....ot in doubt and the doubt is only about quantum of service. Moreover, we have also noted that the assessee had reported a loss of Rs.7860.41 lacs and the assessment was completed by the A.O. at a loss of Rs.7795.45 lacs even after making this disallowance of Rs.65 lacs. This is also the claim of the assessee that the assessee is eligible for deduction of 100% u/s. 80-IA(4) even if the assessee is ....