TaxTMI 
TaxTMI 
2014 (3) TMI 72
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....ned expenditure incurred as expenses on visa processing and other consulate fees added u/s. 69C of the I.T. Act even though the same was not adequately supported by evidence. 2. On the facts and in the circumstances of the case and in law, the ld. CIT(A) ha erred in accepting the additional evidence which were not produced before the A.O. during the course of assessment proceedings and violated the provisions of Rule 46A." 3. Facts necessary for disposal of the appeal are stated in brief. The assessee is Proprietor of M/s. Royal Services and is engaged in the business of Travel Agency. For the year under consideration assessee declared total income of Rs. 8,29,981/-, which was originally processed under section 143(1) of the Act but l....
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....s that he has withdrawn cash from the bank and the same was spent as and when needed and in respect of certain expenditure the amount was immediately reimbursed by the parties because it ought to have been incurred by the parties such as visa fees, etc. 5. The AO noticed the number and details of cash withdrawn from the bank, which works out to Rs. 45,80,000/- whereas the assessee incurred an amount of Rs. 68,21,500/- on 31.03.2007 towrds reimbursement for which no explanation was furnished but the assessee shown to have spent a sum of Rs. 44,64,933/- in the form of Consulate fees. Thus, the differential amount of Rs. 23,56,567/- (Rs. 68,21,500 - 44,64,933) was treated as unexplained expenditure, which was added under section 69C of the ....
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....estigation Team. As regards the specific selfmade vouchers furnished by the assessee, the AO stated that there was no justification for payment in cash and the payments made exceed the visa fees. 7. In rebuttal, the assessee submitted that the details of visa fees payable were produced to prove that certain Consulates accept payments only in cash. It is also submitted that earlier years' details could not be furnished because some Consulates were not disclosing the visa fees on the website in respect of A.Y. 2006-07, hence the latest updates were provided. With regard to the monthly break up of fees payment it was stated that the old Chartered Accountant was suffering from cardiac problems and hence it could not be immediately furnished.....
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....ank Ltd., which is their corporate client, the advice of cheque transmittal was found supported by list of persons on whose account visas were handled, payment amounts and invoice raised by the appellant were found and tallied with the daily statement. In noncorporate clients, test check showed the invoice supported by copy of passport of the client. The difference in the visa fees mentioned as in 2009-10 and in the AY 2006-07 cannot be made the basis of addition, since the visa fees chargeable vary over time. In view of the verification carried out as above which did not throw up any discrepancy, the and made is not found justified and is deleted." 9. Aggrieved, the Revenue is in appeal before us. The case of the learned D.R. is that th....
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....llowed in the line of business and the evidence in support thereof while coming to the conclusion that there is no case for making addition under section 69C of the Act. He, thus, justified the action of the learned CIT(A). 11. We have carefully considered the rival submissions and perused the record. The case of the assessee all through was that neither the Investigating Wing nor the AO called for certain details as to the mode of operation carried on by travel agents but as a matter of abundant precaution it has filed all the details before the CIT(A) and based on the circumstance the learned CIT(A) thought it fit to admit the same after obtaining a remand report. Having regard to the circumstances of the case we are of the view that a....