2015 (9) TMI 1649

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....rst ground of appeal regarding extending the areas of scrutiny beyond the items mentioned in the A.I.R.? b. On the facts and circumstances of the case whether the Commissioner of Income Tax (Appeals) was justified in confirming disallowance made by the Assessing Officer of Rs. 8,28,157 incurred by firm on the education of an employee? c. On the facts and circumstances of the case whether the Commissioner of Income Tax (Appeals) was justified in confirming disallowance made by the Assessing Officer of Rs. 8,24,612 of foreign travel expenses? The Appellant craves leave to add, alter, amend and or modify all or any grounds of appeal mentioned above at or before the time of final hearing." Assessee vide letter dated 01.12.2014 has taken ....

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....rior lighting design in The New School for design in New York for a period of two years for the sake of firm's benefit. However, the AO was not satisfied with the explanation offered by the assessee, therefore disallowed the amount of Rs. 8,28,157/- incurred by the assessee on the education expense of its employee. The AO also observed that the assessee had debited an amount of Rs. 8,24,612/- towards foreign travel expenses to income and expenditure account but the assessee had not produced any evidence like copies of bills or other documentary evidence in this regard, hence he disallowed the amount of Rs. 8,24,612/- and added back to the total income of the assessee. Aggrieved by the order of the AO, the assessee went in appeal before the....

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....hereas the instructions of CBDT regarding wider scrutiny and administrative approval were issued on 08.09.2010, hence the same cannot be applied to earlier period. He also relied upon the decision of the Chandigarh Bench of the Tribunal in the case of "Anup Sharma vs. ACIT" in ITA No.161/CHD/2012 decided on 10.09.2014. 5. We have considered the rival contentions and have also gone through the records. The undisputed fact in this case is that the case was selected for scrutiny under CASS. It is also undisputed that the CASS information was regarding the receipt/payment of fees for professional/technical services etc. and in relation to interest other than securities. Apart from the aspects of AIR information, the AO widened the area of inqu....

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....s has been reiterated in Board Circular F.No. 225/26/2006-ITA.II(Pt.) dt. 8th September,2010 which is extracted below for ready reference. "F.No.225/26/2006-ITA-II(Pt.) Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, dt. 8th September May,2010 To: All Chief Commissioners of Income Tax All Directors General of Income Tax Sir/Madam, "Sub: Selection of cases for scrutiny on the basis of data in AIR returns and subsequent assessment proceedings - reg. Reference is invited to Board's letter of even number dt. 23rd May,2007 regarding scope of enquiry in the scrutiny cases selected only on the basis of information received through the AIR returns. 2. The above mentioned guide....