TaxTMI 
TaxTMI 
2015 (10) TMI 1002
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.... 1. "Despite ample opportunity, the only material that was submitted during the assessment proceedings in support of pay channel expenses were copies of the concerned ledger accounts which was not sufficiently adequate to prove genuineness of the entire claim. 2. Despite ample opportunity the onus cast on the assessee to produce confirmations of the pay channels was neither discharged by it nor shifted by it. 3. All the evidence filed during the appellate proceedings other than copies of the ledger accounts of pay channel expenses were additional evidence which could well have been filed at the time of assessment proceedings but was not so filed evidently to avoid in-depth enquiry. 4. The conditions laid down in Rule 46A for adm....
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....of additional evidence filed before him because he had given due opportunity to the ld. AO and called the assessee with accounts book and relevant record examined them and then submitted his remand report. Therefore, the ld. CIT(A) observed that there was no violation of Rule 46A and that no additional evidence was filed. 7. Aggrieved by the order of the ld. CIT(Appeals), the Revenue is in appeal before us. 8. The ld. DR submitted that there was no detail that was filed in respect of the payments regarding the pay channel expenses. The ld. DR submitted that various entries in the order sheet indicate the number of opportunities given to the assessee to file the details regarding the pay channel expenses. Ld.DR submits that the assesse....
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....t dated 18th August, 2008. The ld.AR submits that as per the aforesaid clauses under the agreement specifically mentioned herein, the assessee has to incur the pay channel expenses to earn income from the activity. Therefore, it is pleaded that the same need to be considered as Revenue expenditure. 11. The ld. AR further submits that these payments are fully supported with documentary evidences and are verifiable from the books of accounts which were duly produced before the AO as is evident from the assessment order itself. It is submitted the ld.AO has not found any discrepancy or defect in the books of account. Even with the ledger accounts of the various pay channel expenses as well as the bank statement and TDS certificates furnishe....
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....f assessment. The ld. CIT(A) accordingly held that the TDS certificates cannot be termed as additional evidence as sought to be suggested in the remand report. The ld. CIT(A) further records that the AO has not given the basis as to who he has arrived at a figure of 20% for the purpose of disallowance of pay channel expenditure. 13. On perusal of the agreement dated 18th August, 2008, we observe that the assessee is bound to procure the pay channel expenses by virtue of clause 2.2 of the agreement and has to bear all the pay channel expenses from its own fund. The AO has conveniently omitted to refer to the said agreement of the appellant company with City Cable Network Ltd. which was placed on record during the assessment proceedings. T....