TaxTMI 
TaxTMI 
2016 (5) TMI 1029
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....he Assessing Officer on disallowance of expenditure land and professional income is treated on par with salary income of the assessee. 3. The Brief facts of the case, the assessee is a Managing Director of M/s.Geeco Enercon (P) Ltd, Trichy and filed return of income on 25.04.2007 for the assessment year 2006-07. The assessee disclosed gross salary from the Geeco Enercon (P) Ltd B3,24,000/- and separately disclosed professional receipts of B21,66,939/- and form 16 was issued for salary income and form 16A was issued for professional income. The ld. Assessing Officer found that the assessee has claimed expenditure of B13,05,119/- in the profit and loss account and net professional income offered to tax B8,61,820/-. The return of income was processed u/s.143(1) of the Act and as per scrutiny norms notice u/s.143(2) was issued and Assessing Officer considered the information and the submissions of the assessee and completed assessment u/s.143(3) of the Act by disallowing 10% of expenditure being B24,358/- due to non availability of any supporting evidence. Subsequently, the Commissioner of Income Tax-II, Trichy passed Revision order Sec.263 dated 20.03.2013 in C.No.7143(2)/CITII/ TR....
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....stated that the consultancy done by the assessee on behalf of the company is for product development fat ,energy savings devising methods for fuel efficient systems and for modification of existing machinery for improving the conservation of power etc. for boilers. It is stated that there is no agreement of terms between the company and Mr. RaJagopol for the consultancy work done by him. During my visit, in the office threeemployeii5 were present. Regarding, those employees claimed to have been employed in the office duing the financial year 2005-06, it is found that there were eight employees only os per the acquaintance register against the ossessee's claim of 10. It is stated that nobody is presently __ employed with the office nor there been any records evidencing their identity" educational qualification, their employment orders, nature of job done, P.F records, ESI records and PtofessianC'l1 Tax records evidencing their employment produced. Except for an acquaintance register ( with no date in the signature for the period from D1/04/2005 to 31/3/2006, for salary payment for eight persons, viz, Shri. S. Haridas, V. Kumar, L. Chandrasekar, R. Sukumor, P. Selvam, P. S....
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....ilers. The ld. Assessing Officer found that the invoices raised by the assessee for consultancy services charges includes travelling expenses, accommodation and local conveyances. The ld. Assessing Officer is of the opinion that the invoices are prepared for supporting the claim of the assessee and cannot be relied to support the actual consultancy work. The ld. Assessing Officer has overlooked the contentions of the assessee to maintain confidentiality in the consultancy involving design & methods for boilers. The expenditure does not bear the details of bills raised with the companies and no TDS details were furnished. The Assessing Officer assumed arbitrarily as the assessee is a Managing Director is receiving salary and professional income and treated entire receipts as salary income and passed the order. Aggrieved by the order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals). 4. In the appellate proceedings, the ld. Authorised Representative of the assessee argued on the grounds raised that Assessing Officer treated the entire consultancy fees as salary income wereas TDS was deducted by the company u/s.194J of the Act and form 16A was issued. Th....
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....y the Commissioner of Income Tax (Appeals) order, the assessee assailed an appeal before Tribunal. 5. Before us, the ld. Authorised Representative reiterated the submissions of assessment and appellate proceedings and the provisions of law and judicial decisions. The facts being the assessee is a Managing Director in M/s. Geeco Enercon (P)Ltd and also rendering consultancy services and the salary is paid only for administrative work. The assessee disclosed consultancy charges in profit and loss account and claimed deduction of expenditure incurred for travelling and other establishment expenses. The assessee is a highly qualified engineer by profession and worked in national and international organizations further delivered lecturers on boilers and plant in India and foreign countries and specialized in selection of suitable air pre-heater or modification of the existing equipment. The ld. Authorised Representative argued that PF and ESI was not deducted as the strength of works are much below the limit. The contention of the Assessing Officer that the assessee has not paid electricity charges but it was explained that assessee render services in outstation projects and therefor....