TaxTMI 
TaxTMI 
2018 (7) TMI 1400
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....x in the hands of Nunhems BV and accordingly was not covered by the provisions of Sec. 195 of the IT Act. 3. Erred in confirming the disallowance of the payment made to Bayer Crop Science Ltd., for Rs. 38,72,492/- u/s 40(a)(ia) of the IT act without appreciating that the payment was mere reimbursement of appellants own share of actual cost and is not covered by the provisions of Sec. 194J of the Act. 4. Erred in confirming the additional amounting to Rs. 40,51,279/- on account of various payments u/s 40(a)(ia) of the Act. 5. Erred in confirming disallowance of the provision on scheme discount amounting to Rs. 51,91,186/- as appearing on the liability side of the balance sheet under the head 'accrued expenses and other liabilities' treating the same as expenditure not crystalized during the year. 6. Erred in confirming the disallowance of the leave travel allowance and bonus amounting to Rs. 34,90,006/- and Rs. 60,80,259/- respectively, on the ground that the assessee has not incurred the expenditure during the F.Y 2005-06, without appreciating that payment was made in April 2006, being allowable u/s 43B of the Act". 1.1 Further vide letter dat....
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....and that during or at and that during or the end of the lease period, all permanent fittings including the interior designing of the said office and the warehouse done by the assessee at his own cost, can be removed. 3. The A.O observed that majority of the expenditure is towards furniture and fixtures and electrical fittings only and that the amount of leasehold improvement is only Rs. 4,18,465/-. He observed that even if this amount is to be considered it has to be considered as incurred for acquiring of fixed assets with a view to bringing into existence an asset or an advantage of enduring benefit and hence is capital in nature. He further considered the balance of expenditure also as capital in nature and allowed 5% depreciation thereon. 3.1 Further, he also observed that the assessee has made payments to various parties without deducting tax at source. He observed that assessee had made payments to: 1) Nunhems BV Rs. 63,21,003/-. 2) Bayer crop science limited Rs. 38,72,492/-. 3) To various other parties totaling to Rs. 99,41,131/- 3.2 The A.O was of the opinion that the payment made to Nunhems BV Ltd is a payment towards IT services rendere....
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....directing the A.O to verify the correctness of the claim of the assessee for set off of brought forward depreciation. Aggrieved by the order of the CIT(A), the assessee is in second appeal before us. 6. As regards ground No. 1, the Ld. Counsel for the assessee reiterated the submissions made before the authorities below and submitted that the expenditure incurred by the Assessee on the leasehold premises to make it fit for its working is revenue in nature and placed reliance upon the following decision in support of his contention: i. CIT Vs Shri Ram Refrigeration industries Ltd., reported in [2001] 116 Taxman 381 (Del). 6.2 The Ld. DR, on the other hand, supported the orders of the authorities below and placed reliance upon the following decisions: i. Coastal Resorts India Ltd., reported in [2014] 47 Taxmann.com 384 (Kar). ii. Tajmahal Hotel Vs CIT, reported in [1967] 66 ITR 303 (AP). iii. Surender Madan Vs ACIT, reported in [2013] 37 Taxmann.com 388 (Del). 6.3 Having regard to the rival contentions and material placed on record, we find that the expenditure which is incurred by an assessee on the leasehold premises for carrying on its ....
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....e of payment of Rs. 63,21,003 made by the assessee to Nunhems BV u/s 40(a)(ia) of the I.T. Act, the contentions of the assessee have been that the above payment was reimbursement of expenditure incurred by Nunhems BV on behalf of the assessee towards the inter-connectivity facility which was provided to the assessee at its Gurgaon facility. It was submitted that Bayor group had entered into an agreement with a party named Equant to provide global inter-connectivity to the Bayer Group in which Nunhems BV is an affiliate and that Nunhems BV has made the payment to M/s. Equant on behalf of the assessee for its usage of the facility at Gurgaon which was reimbursed by the assessee and therefore, there is no income element therein to Nunhems BV and is not taxable in India. It was also submitted that the facility provided by M/s. Equant to the assessee and its group is not a technical service and therefore, it is not liable to TDS u/s 195 of the I.T. Act. 7.1 The learned Counsel for the assessee has relied on the following decisions of in support of his contentions above: i) ITAT, Bangalore Bench, in the case of CIT vs. Torry Harris Business Solutions (P) Ltd reported in (2015....
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....us. However, we find that it is not Nunhems BV which has rendered the services to the assessee, but it is Equant which has rendered services and the payment was routed through Nunhems BV. The CIT (A) has held it to be business income of Equant u/s 9(1)(i) of the Act and the Revenue has not challenged this finding of the CIT (A). Business income of a non-resident is taxable in India, provided it has a PE in India. Admittedly, Equant has no PE in India and therefore, such income is not chargeable to tax in India. Provisions of section 195 are attracted if a payment is made to a non-resident, provided the income is chargeable to tax in India. In the decisions relied upon by the assessee, it was held that payment for bandwidth services is not royalty or FTS. For the sake of clarity and ready reference, the relevant paragraphs are reproduced hereunder: i) T-3 Energy Services India (P) Ltd - para 23 to 25 "23. The assessee on the other hand, has relied on the decision in WNS North America Inc. Vs. ADIT (supra) i.e. decision of Mumbai Bench of Tribunal, which has been approved by the Hon'ble High Court in DIT Vs. WNS UK Ltd. (2013) 214 taxman 317 (Bom). The issue bef....
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....mbursement but is a case of payment to third party through its associated enterprise and hence, the need for withholding tax. We have already decided this issue in the paras hereinabove that under the provisions of DTAA, the term 'royalty' is defined and it does not cover any such services availed and payment made and hence, there is no merit in the stand of Revenue in this regard and the same is dismissed. In any case, the privity of contract is between Qwest Communications Inc, the service provider and T-3, USA, who in turn had received bandwidth and passed on the services to various entities of group on cost to cast basis. The assessee as recipient of services had reimbursed the same and in the absence of profit / income element, there is no liability to deduct tax at source. Hence, the assessee cannot be held to be in default". ii) Kotak Securities Ltd (Paras 9 & 10) "9. There is yet another aspect of the matter which, in our considered view, would require a specific notice. The service made available by the Bombay Stock Exchange [BSE Online Trading (BOLT) System] for which the charges in question had been paid by the appellant - assessee are common se....
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....of the assessee by the decision of this Tribunal in the assessee's own case for assessment year 2009-10 to which both of us are signatories. The relevant portion of the Tribunal order is reproduced hereunder: 21. We have perused the orders and heard the rival contentions. Claim of the assessee was denied by the AO for want of deduction of tax at source. Payments made by the assessee were undisputedly for purchasing inter-net band width. DRP had relied on the definition of 'royalty' given in Explanation-2to section (9)(1)(vi) of the Act and held that royalty included payments effected for use of any process. Reliance was also placed on Explanation-6 inserted below Sec.9(1)(vi), through Finance Act, 2012 with retrospective effect from 1-4- 1961 which mentions that process. used need not be secret and will include transmission by Satellite Cable, optic fiber or any other similar technology. However, we find that Hon'ble Delhi High Court in the case of M/s Arathi Cellular Ltd., (supra) had held under at paras-10 to 21 of its judgment; 10. Sec. 194J which relates to 'fees for professional or technical services', so much as is relevant, reads as ....
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....hargeable under the head 'salaries'. The said definition is in two parts. The first part is 'means and includes' type of definition and the second part is 'does not include' definition. In the present appeals we are not concerned with the second part. The entire focus is attracted to the first part and that too, to the expression 'consideration for the rendering of any managerial, technical or consultancy services'. It is only if the payments made by the respondents/ assessees to MTNL/other companies in respect of interconnect/port access charges fall within the ambit of this expression that the said payments could be regarded as fees for technical services as contemplated under s. 194J of the said Act. 12. In Skycell (supra), a learned Single Judge of the Madras High Court noted that installation and operation of sophisticated equipments with a view to earn income by allowing customers to avail of the benefit of the user of such equipment does not result in the provision of technical service to the customer for a fee. It was also held that technical service referred to in Expln. 2 to s. 9(1)(vii)contemplated the rendering of a 'service&....
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.... "a person whose office it is to manage an organization, business establishment, or public institution, or part of one; a person with the primarily executive or supervisory function within an organization etc.; a person controlling the activities of a person or team in sports, entertainment, etc." It is, therefore, clear that a managerial service would be one which pertains to or has the characteristic of a manager. It is obvious that the expression 'manager' and consequently 'managerial service' has a definite human element attached to it. To put it bluntly, a machine cannot be a manager. 14. Similarly, the word 'consultancy' has been defined in the said Dictionary as 'the work or position of a consultant; a department of consultants.' 'Consultant' itself has been defined, inter alia, as 'a person who gives professional advice or services in a specialized field.' It is obvious that the word 'consultant' is a derivative of the word 'consult' which entails deliberations, consideration, conferring with someone, conferring about or upon a matter. Consult has also been defined in the said dictionar....
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....ncluding taxes on entertainment, amusement, betting and gambling'. The Supreme Court was of the view that the general meaning of 'luxury' had been explained or clarified and must be understood in a sense analogous to that of the less general words such as 'entertainment', 'amusements', 'gambling' and 'betting', which were clubbed with it. The Supreme Court, employing the said principle of noscitur a sociis, noted that this principle of interpretation had received the approval of the Supreme Court in an earlier decision in Rainbow Steels Ltd. vs. CST (1981) 2 SCC 141. The Supreme Court also noted that earlier, indiscriminate application of this rule was doubted in the case of The State of Bombay vs. The Hospital Mazdoor Sabha AIR 1960 SC 610. However, after referring to the said decision (Hospital Mazdoor Sabha), the Supreme Court in Godfrey Phillips India Ltd. & Anr. (supra) observed that they did not read the said decision as excluding the application of the principle of noscitur a sociis to the case before them inasmuch as it had been amply demonstrated that the word 'luxury' in Entry 62 was doubtful and had been defined and con....
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....;minerals' in s. 80HHC should be read in the context of the words 'ores' which it was associated with and must draw colour therefrom. It was submitted that the word 'minerals' must be read as referring only to such minerals as are extracted from ores and not others. While the Supreme Court agreed that the doctrine of noscitur a sociis was applicable, it held that the word 'minerals', in sub-s. (2)(b) of s. 80HHC must be read in the context of both 'mineral oil' and 'ores' and not just 'ores'. The Supreme Court held that these three words taken together are intended to encompass all that may be extracted from the earth. Consequently, the Supreme Court held that all minerals extracted from the earth, granite included, must, therefore, be held to be covered by the provisions of sub-s. (2)(b) of s. 80HHC, and the exporter thereof was, therefore, disentitled to the benefit of that section. 19. From this decision, it is apparent that the Supreme Court employed the doctrine of noscitur a sociis and held that the word 'minerals' took colour from the words 'mineral oil' which preceded it and the word 'ores'....
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....rent reasons. Assessee here had produced bills to show that payments effected thereof for purchasing inter-net band width. We are therefore, of the opinion that assessee was not bound to deduct tax at source u/s 194J of the Act on the payments effected to the service providers. Vis-à-vis application of Sec.194C, the AO was not able to show that the service provided were based on any specific contract entered by the assessee with the service providers. We are therefore, of the opinion that disallowance u/s 40(ia) of the Act was not warranted. Such a disallowance stands deleted. Ground no.13 of the assessee is allowed. Respectfully following the same, we do not see any reason to interfere with the order of the CIT(A). Ground No.2 is accordingly rejected". 7.5 In the case of Bharati Airtel Ltd, also, the ITAT "A" Bench of Delhi at Paras 19 to 44 has held as under: "19. The grounds in the assessees' appeal are summarized as follows:- i). Whether the assessee is liable to be treated as the assessee in default u/s. 201(1). ii) Whether inter-connected agreements between the assessee and the FTOs are in the nature of revenue sharing arrange....
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....ame are reproduced hereunder:- "8.1 The appellant is carrying on the business of providing telecommunication services to its subscribers. In order to provide international connectivity to its subscribers, the appellant has been granted license to provide International Long Distance services (ILD) [License Agreement No.10- Q7/2002-BS-I(ILD- 02) dated 14th March 2002]. Clause 2.2 (a) of the said License is reproduced below [refer page 36 of letter dated 28.03.2012]: "2.2(a) The ILD Service is basically a network carriage service (also called Bearer), providing International connectivity to the Network operated by foreign carriers. The ILD service provider is permitted full flexibility to offer all types of bearer services from an integrated platform. ILD service providers will provide bearer services so that end-to-end tele-services such as voice, data, fax, video and multi-media etc. can be provided by Access Providers to the customers. .... ILD service providers would be permitted to offer international bandwidth to other operators. ILD service provider shall not access the subscribers directly which should be through NLD service provider or the Access Pr....
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....th ILD operator, who in turn shares the revenue with the foreign telecom operator(s). b) Carrying calls from outside and terminating such calls in India: The call in this case originates from outside India. The call may originate from, say, a subscriber of AT & T, USA. The call travel automatically on the network of AT & T, USA and will be handed over at the Point of Presence (POP) / landing station in New York of the appellant. From such landing station, the call is carried to the landing station of the appellant, in say, Mumbai, where it is handed over to the network of NLD service provider in India for further carriage/transportation to its destination. It is also possible that the network of the NLD service provider may transfer the call to the Access Provider, (if the two are different), who may transport it to the customer. As can be observed from the above, the role of ILD operator is to transport the call from outside India till the first landing station in India. As submitted earlier, the ILD operator is not allowed to transport calls within India. c) Carrying calls from a telecom service provider in one country outside India to another ....
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.... physical connections/transmission bandwidth. Public network is not to be connected with leased circuits/CUGs. It is clarified that NLD service licensee can provide bandwidth to other telecom service licensee also." 8.4 It will thus be appreciated that the entire services are provided by the appellant as an ILD operator, outside India. From the ILD gateway of the appellant in India, the call is carried to the gateway of the appellant outside India and if the appellant has no gateway outside India, the call is carried on the telecom network of the foreign operator(s}. The call from the gateway outside India is transported to the customer destination by the local foreign telecom operator(s)." (Emphasis ours) 23. A perusal of the above extracted paras leads to the following conclusions: The Assessee, as part of its ILD Telecom Services business, is responsible for providing services to its subscribers in respect of calls originated/terminated outside India. Thus, for the provisions of ILD services, the Assessee is required to obtain the services of FTOs for provision of Carriage Connectivity Services over the last leg by the communication channel i.e. the la....
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....ny consideration. for rendering any (managerial, technical or consultancy services'. The word (technical' is preceded by the word (managerial' succeeded by the word 'consultancy'. Since the expression (technical services' is in doubt and is unclear, the rule of noscitur a sociis is clearly applicable. This would mean that the word 'technical' would take colour from the words 'managerial' and 'consultancy', between which it is sandwiched. A managerial service would be one which pertains to or has the characteristic of a manager. It is obvious that the expression (manager' and consequently (managerial service' has a definite' human element attached to it. To put it bluntly, a machine cannot be a manager. The service of consultancy also necessarily entails human intervention. The consultant, who provides consultancy service, has to be a human being. A machine cannot be regarded as a consultant. From the above discussion, it is apparent that both the words 'manaqerial" and 'consultancy' involve a human element. And, both, managerial service and consultancy service, are provided by humans. Consequently, applying the....
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....ould take colour from the words 'managerial' and 'consultancy', between which it is sandwiched. * Both managerial service and consultancy service are provided by humans. Consequently, applying the rule of noscitur a soccis, the word 'technical' as appearing in Expln. 2 to s. 9(1)(vii) would also have to be construed as involving a human element * The expression 'technical service' would have reference to only technical service rendered by a human. * MTNL or other companies do not provide any assistance to the assessee in managing, operating, setting up their infrastructure and networks. * No doubt, such a facility is 'technical' in the sense that it involves sophisticated technology and may even be construed as 'communication service' but while interpreting the entire expression 'technical service', the individual meanings of the words 'technical' and 'service' have to be shed and only the meaning' of the whole-expression 'technical services' has to, be seen. * The services rendered qua interconnection/ port access do not involve any human interface and, therefore....
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....me situation can arise vice versa in a given case. During the traffic of such calls whether there is any manual intervention, is one of the points which requires expert evidence. Similarly, on what basis is the "capacity" of each service provider fixed when Interconnect Agreements are arrived at? For example, we are informed that each service provider is allotted a certain "capacity". On what basis such "capacity" is allotted and what happens if a situation arises where a service provider's "allotted capacity" gets exhausted and it wants, on an urgent basis, "additional capacity"? Whether at that stage, any human intervention is involved is required to be examined, which again needs a technical data. We are only highlighting these facts to emphasise that these types of matters cannot be decided without any technical assistance available on record. There is one more aspect that requires to be gone into. It is the contention of Respondent No.1 herein that Interconnect Agreement between, let us say, M/s. Bharti Cellular Limited and BSNL in these cases is based on obligations and counter obligations, which is called a "revenue sharing contract". According to Respondent No.1, Sectio....
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....see the opportunity to cross examine them. He also reexamined the expert witness. Our decision will be based on the evidence so collected by the AO on this aspect of human intervention in the services rendered. It held that the word "technical services" have got to be read in the narrower sense by applying the rule of noscitur a sociis, particularly, because the words "technical services" in Section 9(1)(vii) r/w Expln. 2 comes in between the words "managerial and consultancy services". Hence, there should be involvement/ presence of human element for coming to a conclusion that "technical services" can be said to have been rendered in terms of Explanation 2 to Section 9(1)((vii) of the Act. In our view the Hon'ble Supreme Court of India has approved the proposition laid down by the Hon'ble High Court, that this is a service and that if would be FTS as defined u/s. 9(1)(vii) if there is human interference in such communication service. Hence the issue to be considered is narrow and based on evidence collected by the Revenue post the Hon'ble Supreme Court judgment. All other issues are no more res-integra. 29.2 This aspect as to whether a human element is involv....
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....ces; examination of technical experts by the ACIT TDS, New Delhi in the case of Bharti Cellular Ltd.; thereafter cross examination made by M/s Bharti Cellular Ltd.; also opinion of Hon'ble the then Chief Justice of India Mr. S.H. Kapadia dated 03/09/2013 and also various judgments given by the ITAT Ahmadabad Bench in the case of Canara Bank on MICR and Pune Bench decision on Data Link Services. We find that for installation/ setting up/ repairing/ servicing/ maintenance capacity augmentation are require human intervention but after completing this process mere interconnection between the operators is automatic and does not require any human intervention. The term Inter Connecting User Charges (IUC) also signifies charges for connecting two entities. The Coordinate Bench also considered the Hon'ble Supreme Court decision in the case of Bharti Cellular Ltd. in the case of i-GATE Computer System Ltd. and held that Data Link transfer does not require any human intervention and charges received or paid on account of this is not fees for technical services as envisaged in Section 194J read with Section 9(1)(vii) read with Explanation-2 of the Act. In case before us, the assessee ....
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....e subscribers in the assessee's circle travels to the jurisdiction of another circle, the call gets connected automatically without any human intervention. It is due to configuration of software system in the respective service provider's place. In fact, the Sub- Divisional Engineer of BSNL has explained as follows in response to Question No. 23:- "Regarding roaming services as explained to question no. 21. Regarding interconnectivity, initial human intervention is required for establishing the physical connectivity and also for doing the required configuration. Once it is working fine, no intervention is required. In case of any faults human intervention is required for taking necessary corrective actions." In view of the above, once configuration was made, no human intervention is required for connecting roaming calls. The subscriber can make and receive calls, access and receive data and other services without human intervention. Like any other machinery, whenever the system breakdown, to set right the same, human intervention is required. However, for connecting roaming call, no human intervention is required except initial configuration in system. This Tribuna....
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....T(A). These decisions of the various Benches of the ITAT, when read with the judgment of the Hon'ble Delhi High Court as well as the Hon'ble Supreme Court, would settle this matter in favour of the assessee. But as a number of other decisions have been relied upon, we examine the same. 35. The Hon'ble Madras High Court in the case of Skycell Communications Ltd. vd. DCIT (2001) 251 ITR 53 (Mad.) held that call charges received from telecom operators from firms and companies subscribing to cellular mobile services provided by them do not come within the definition of technical services u/s. 194J read with section 9(1)(vii) Expln. 2, as it a mere collection of Fee for use of standard facility provided to all those willing to pay for it. Applying the proposition laid down in this case law to the facts of this case, we have to hold that inter connection facility and the service of the FTO in picking up, carrying and successful termination the call over their respective network is a standard facility and the and FTO in question does not render any technical services to the assessee under interconnect agreement. 36. The Hon'ble High Court of Delhi in the ....
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....:- "Income deemed to accrue or arise in India-Fees for technical services/ royalty-Payment for transmission of data and software through uplink and down link services- Assessee engaged, inter alia, in the business of development of software providing on line software services through customer based circuits with the help of VSNL and foreign telecom companies outside India-As per the agreements with such telecom companies assessee is to use the standard facility having standard pricing patterns-There is nothing to show that assessee was provided with any technology or technical services- Therefore, the amounts paid by assessee-company to nonresident telecom companies for downlinking and transmitting of data to the assessee's customers located outside India cannot be considered as 'fees for technical services' under s. 9(l)(vii), moreso when similar services offered by VSNL is not regarded as technical services-Further, no process has been made available to the assessee-Hence, there is no question of applicability of s. 9(l)(vi) too-So long as the amount paid is not taxable under the Act, the clause in the DTAA cannot bring the charge-Hence, there was no liabilit....
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....treaty, then those provisions would apply to those items. Per contra, if it is" found that those provisions are not applicable to those items of income, then the logical result would be that those items of income will remain in art.7 and will not go out of the same. Such items of income which do not fall under any other provision of the double tax treaty, would continue to be viewed as business profits covered by art. 7. The position canvassed by the counsel for the assessee seems to be more logical than the view canvassed on behalf of the Department. Fees for technical services are essentially business profits since the rendering of such services is the business of the non-resident. In order to take out an item of income from the business profits, it is necessary under art. 7(7) that there should be some other provision in the treaty dealing specifically with the item of income sought to be taken out from the business profits. If there is no other provision in the treaty or if the provision made in the treaty is not found applicable or to cover the item of income sought to be taken out from the business profits, for whatever reason, then it follows that the particular item of inco....
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.... when there is no 'FTS' clause in the treaties, the payment falls under Article 7 of the Treaty and is business income". 7.6 Since the facts and circumstances of the case before us are similar, we are of the opinion that the payment does not fall under the category of "fee for technical services" or "Royalty" and is thus not liable for TDS. Further, the CIT (A) has held it to be business income of M/s. Equant u/s 9(1)(i) of the Act and since the non-resident Equant does not have PE in India, it cannot be brought to tax. It is undisputed that only such income which is taxable in India is amenable to TDS provisions. Thus, the ground of appeal No.2 is accordingly allowed. 8. As regards Ground No.3, we find that the assessee has made payment of Rs. 38,72,492 to Bayor Crop Science Ltd and the facts are similar to the payments made to Nunhems BV as discussed above. The said amount was paid by the assessee on account of provision of I.T. facilities and services as Bayor was to manage the Lotus Notes and other LAN facilities of the assessee for economies of cost. The AO held that the services rendered by Bayor Crop Science Ltd are "fees for technical services" and therefore, ....
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....see submitted that though the assessee has made the provisions on the basis of the sales, but since the payment had not accrued to recipient at that point of time, the assessee has debited the said amount to the provision a/c and that the TDS was made when the ultimate payment was made. Before the CIT (A), the assessee had explained in Para 10.4 as under: "In both the cases mentioned above, the agents are "entitled" to receive commission only after NIPL actually receives such payment against the supplies made (Refer to clause 4 of the agreement with Himgiri Agro Traders - enclosed as Annexure 42). Accordingly, the 'entitlement' of the commission to the agent depends on the receipt of payment by NIPL against supplies after taking into consideration the amount of actual bad debts and discounts. 2.7.1.2 Our Submissions The obligation to deduct tax under the withholding tax provisions of the Act arises only when the vendor acquires a right to enforce/receive payment from the payer and not on the basis of mere credit by the payer in the books of account of any adhoc provision. The concept of "accrual of income" to the vendor is a very important factor in deter....
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.... by the learned Counsel for the assessee that the payments related to the year under consideration, but were made before the date of filing of the return and hence, the disallowance u/s 43B is not justified. We find that the Leave Travel Expenditure and Bonus are crystalised expenditure and since it has been paid before due date of filing of the return of income, as provided under the proviso to section 43B, the same is allowable. Therefore, we direct the AO to allow the same if it is paid before the due date of filing of the return. Thus, the assessee's appeal for the A.Y 2006-07 is partly allowed. ITA Nos. 327/Hyd/2012 for the A.Y 2008-09 10. In this year, the ground of appeal No.1 is similar to Ground of appeal No.1 for the A.Y 2006-07 and respectfully following the decision in the above appeal, the Ground of Appeal No.1 is allowed. 11. As regards Ground No.2 relating to research & development expenditure which was disallowed for nonsubmission of relevant forms, it is submitted that in the subsequent A.Y i.e. A.Y 2009-10, the AO had scrutinized the forms and after verification of the same, had allowed the expenditure. Since the details of the said expenditures are not b....