TaxTMI 
TaxTMI 
2003 (5) TMI 50
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....ount of consultancy and liaison charges without there being a finding by the learned Assessing Officer that no services were rendered by Assam Vegetable and Oil Products Pvt. Ltd. to the appellant-firm? (2) Whether, on the facts and in the circumstances of the case, the learned Tribunal was justified in making the disallowance under the head 'Land development' when it would be clear and evident from the records of the instant case that the land acquired was in the better interest of the trading activities of the appellant-firm? (3) Whether, on the facts and in the circumstances of the case, the learned Tribunal was justified in making the disallowances under the head 'Additions' under section 40A(3) of the Income-tax Act when, on the ....
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....ct. Under this agreement, the consultancy firm has to provide all kinds of consultancy and super-vision services including getting prepared the structural planning, designing and details of all civil works and also to supervise the day-to-day progress of the work at all stages and the consultancy firm was to be paid, in lieu of the services rendered, three per cent. Of the payment received by the appellant-company against the construction work. As per the appellant, during the year under appeal, a sum of Rs. 4,70,518 was paid by the appellant-company to Assam Vegetable and Oil Products Pvt. Ltd., as consultancy charges and the appellant-company claimed the deduction as business expenditure of this amount which has been paid to the consultan....
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....business circles when work is allocated preference is given to one's relatives or near ones, if it is so possible, considering the confidentiality of the persons concerned. Simply because some of the partners of the firm are close relatives of the directors of the consultancy company the consultancy charges cannot be disallowed, which have been paid in accordance with the contract entered into between the parties. This has been proved by producing evidence that the payment is made by account payee cheques. In the usual trade practice, when the construction is undertaken it cannot be said that the service of consultancy is not procured. There is no evidence on record that the consultancy charge of three per cent. as agreed under the agreemen....
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....laimed had been sought to be paid in cash. The Assessing Officer found that there was over writing and erasing of entry in the cash book relating to the claim made by the assessee. During the course of arguments, learned counsel for the assessee/appellant has admitted that the alleged sale of the land was not by registered sale deed and it was only by way of purchase of the possessory right of the land. Under the relevant building laws in the State of Assam, a person having possessory right over the land would not be entitled for sanction of buildings plan of the school by the sanctioning authority nor would be entitled to develop the park on such land. In the absence of possibility of permission or sanction of building plan or approved pla....