2016 (7) TMI 1475

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.... companies as third party administrator (TPA). The assessee settles and discharges health insurance claims raised by various individuals under the insurance policies. The assessee acts on behalf of the insurance companies in claim settlement of mediclaim policies. The assessee filed its return of income for the impugned assessment year on 15-10-2010 declaring total income of Rs. 4,96,35,608/-. The case of the assessee was selected for scrutiny under CASS and accordingly notice u/s. 143(2) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") was issued to the assessee on 30-08-2011. During the course of scrutiny assessment proceedings, the Assessing Officer made disallowances of Rs. 4,40,54,578/- on account of disallowance of e....

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.... expenditure and it should be amortized over the period of 3 years. The assessee had incurred total expenditure of Rs. 6,60,81,867/- during the Financial Year 2009-10. The Assessing Officer allowed Rs. 2,20,27,289/- and the balance amount of Rs. 4,40,54,578/- was disallowed. The Assessing Officer had made disallowances on identical ground in immediately preceding year i.e. assessment year 2009-10. The Commissioner of Income Tax (Appeals) had accepted the contentions of the assessee and deleted the disallowances. However, in the assessment year under appeal the Commissioner of Income Tax (Appeals) has taken a contrary view on same set of facts. In assessment year 2009-10 the Department carried the issue in appeal before the Tribunal in ITA N....

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....n immediately preceding assessment year. In respect of disallowance of Provisions for Consultancy Charges, the ld. DR contended that the assessee has not placed on record any documentary evidence for engaging the services of consultants/advisors. In the absence of any documentary evidence the Commissioner of Income Tax (Appeals) has rightly confirmed the disallowance of Rs. 6,91,190/-. 6. We have heard the submissions made by the representatives of rival sides and have perused the orders of the authorities below. The first issue in appeal is with regard to disallowance of enrollment expenditure Rs. 4,40,54,578/- under RSBY scheme. We find that similar disallowance was made by the Assessing Officer in the assessment year 2009-10. The Comm....

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.... grounds raised are as under : "5. We have considered the rival arguments made by both the sides. From the finding given by the CIT(A) we notice that as against incurring of approximately Rs. 77/- towards cost of each smart card the assessee received service charge of Rs. 97/- per smart card from the insurer. Further, the finding given by the Ld.CIT(A) that the issue of smart card per se is completely independent line of business for the assessee company from the main business of settling the beneficiaries claimed on behalf of the insurance companies under the RSBY scheme could not be controverted by the Ld. Departmental Representative. Further, the Ld. Departmental Representative also could not controvert the finding given by the CIT(A)....