TaxTMI 
TaxTMI 
TaxTMI 
2017 (12) TMI 130
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....e Tax Appellate Tribunal dated 17.05.2013 for the assessment year 2008-09 raising following questions of law. "(1) Whether on the facts and circumstances of the case, was the ITAT, legally justified in its finding that the disallowance under the head 'Certified Data Purchase' was unjustified, when, in fact, the ITAT has not dislodged the AO's finding that the assessee could not substantiate the contents and the utility of the data purchased by it? (2) Whether on the facts and circumstances of the case, and the material on record, was the ITAT legally justified in holding the view that the AO was not justified in disallowing 30 % of the salary and wages, when in fact, the assessee did not deduct any Provident Fund (PF) or Emp....
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.... of the activity carried out by the assessee, as claimed was of having collected information in respect to prospective clients for the benefit of Bajaj Allianz. Such information had been collected by purchase of that information from Shiva Fund Trust, as also through reference. The said information was collected and then processed and sold or supplied to Bajaj Allianz. It is also on record that the assessee had been carrying out such activity since before and the aforesaid head of expenditure had been recoginsed and accepted by the Income Tax department inasmuch as the assessee was subjected to scrutiny assessment for the year 2007-08 wherein no addition or disallowance was made under the aforesaid heads. For the subsequent year also i.e. ....
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....come filed by Shiva Fund Traders. The Tribunal also took note of the fact that the assessee had actually purchased the data from Shiva Fund Traders and maintained complete details of the same. The information purchased had been utilized to generate revenue by the asssessee. In that view of the matter, the Tribunal has recorded a finding of fact that the assessee had actually engaged in the activity of the sale of data to Bajaj Allianz for which it had purchased certain data from another entity. The finding of the Assessing Officer and the argument advanced on that basis that the assessee had failed to establish the contents of utility of the data and the process by which it was obtained etc. are largely irrelevant to the issue of the asses....
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....at the Assessing Officer did not point out which of his 'Vouchers' were not produced by the assessee. Learned counsel for the revenue has submitted that the finding of the Assessing Officer in this regard was categorical that none of the 'Vouchers' in respect of 12,000 entries mentioned in annexure-C-1 had been produced. Learned counsel for the assessee on the other hand submits that the Assessing Officer has made reduction of 30 per cent of the expenditure towards salary and wages. However, in view of the TDS certificate being in existence and not doubted, such disallowances could not have been made. Having considered the submissions so made, we find that though the revenue does not dispute the existence of form-16 in re....
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....s limited issue of disallowances of salary expenditure to the extent of 30 per cent after appraisal of the entire evidence that may exist on record. In view of the above, the question no.2 is answered accordingly. As to the third question of law raised, it pertains to part disallowance the 'Referral Fee'. In this regard it is seen that the nature of the business activity conducted by the assessee cannot be doubted. The assessee had also filed its return of income for different years and similar expenditure had been shown and also allowed. The nature of the expenses incurred, therefore, could not be doubted keeping in mind the activity conducted by the assessee. In this regard, the Tribunal has further found that the expenditure on....