TaxTMI 
TaxTMI 
2015 (9) TMI 1649
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.... justified in not rendering any decision on the first 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 ti....
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....n Ms. Reshma Killawala's post graduation, who was an employee of the firm, in interior 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 a....
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....bmitted that in the assessee's case notice under section 143(2) was issued on 20.08.09 whereas 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 t....
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.... be immediately brought to the notice of all officers working in your region. Yours faithfully, Sd/- (Renu Jauhri) Director (ITA-II)" 6. These instructions 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 i....
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.... the instruction of 2007 was operative on the date of issue of notice. The Ld. D.R. has not submitted any evidence on the file that the AO had taken the necessary approval of ACIT/JCIT for widening the scope of inquiry. The instructions of the Board are binding upon the Revenue/AO. The Hon'ble Calcutta High Court in the case of Amal Kumar Ghosh vs. ACIT" 2014 (105) DTR (Cal.) 351 has held that the circulars of the CBDT are binding upon the department. The department is bound by that standard and cannot act with discrimination. Hence, the instruction dated 23.05.2007 was very much binding upon the AO. So far as the reliance of the Ld. D.R. on the decision of the Chandigarh Bench of the Tribunal is concerned, we find that the same is relating....