2016 (1) TMI 536

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....erification and analysis of bills raised and payments received during the I- Yr 2005-06 vis-a-vis F Yr. 2006-07.", 3. The assessee is a company. It is engaged in the business of software development. The AO noticed that the assessee had claimed credit for TDS of Rs. 1,56,335/-. The AO noticed from the profit and loss account that the assessee had shown income of Rs. 7,40,000/-. The AO was of the view that the income of the assessee was not commensurate with the receipts on which TDS was made as mentioned in the TDS certificates given by the following three companies: i) Indraprastha Power Generation : Rs. 2,70,000/- ii)SECL : Rs. 4.50,000/- iii)Piper War Area : Rs. 17,14,488/- AO concluded that the assessee ....

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....d in the gross receipts of the assessee in the earlier assessment year and in the absence of any thing contrary being brought to our notice by the learned DR , We are of the view that the addition made by the AO was rightly deleted by CIT(A). Accordingly ground No.1 raised by the revenue is dismissed. 7. Ground no.2 raised by the revenue reads as follows:- "2. That the Ld. CIT(A) erred in deleting the disallowance of Rs. 55,000/- made u/s 40(a)(ia) without considering the remand report of the A. 0. stating specifically that no evidence was furnished by the assessee. " 8. The assessee made payment of Rs. 1,88,155/- towards office rent and maintenance. The assessee also made payment of Rs. 67,671/- as consultancy charges. In re....

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....ce maintenance charges not in the nature of rent covered u/s 1941 of the Act. The AO has not raised any objections on this contention in the remand report. Consequently ground no.2 raised by the revenue is dismissed. 12. Ground No.3 raised by the revenue reads as follows:- "3. That the Ld. CIT(A) erred in deleting the disallowance of Rs. 1,22,875/- out of non- essential expenses made by the A.O on the grounds of failure to produce any evidence." 13. AO identified expenses to the tune of Rs. 6,59,188/- debited to the profit and loss account which were expenses towards house rent, printing and stationery and office expenses etc. AO was of the view that the aforesaid expenses were not necessary for the purpose of business of the....