2019 (7) TMI 1597

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.... section 143(3) of the I.T. Act, 1961, at NIL income as against the returned income filed of loss of Rs. 1,87,37,906/-. The A.O. stated in the assessment order that assessee has shown :- Short term provision as Rs. 26,44,599/- Fee for technical services, fee for professional and consultancy services Rs. 37,36,713/- Salary Rs. 32,13,600/- Supervision and Consultancy foreign Rs. 1,57,11,956/- 2.1. Whereas no work was done by the assessee during the year and no computation for loss of claim was filed. In this background, the A.O. disallowed the loss claimed by the assessee of Rs. 1,87,37,906/-. 2.2. The assessee challenged the addition before the Ld. CIT(A). the written submissions of the assessee is reproduced in....

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....duced as under : "5.3. Finding : I have examined the observations made by the AO in the impugned assessment order, written submissions and supplementary submissions of the appellant and various evidences placed by the appellant in the paper book submitted and with supplementary written submissions submitted. The AR also produced before me various replies / details filed by the assessee before the AO during the course of assessment proceedings, whereas the AO has not referred to any details / evidences / replied filed by the AR, in the impugned assessment order before disallowing the loss claimed by the assessee. It is observed from the assessment order that while passing the impugned assessment order no details filed by th....

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....ning the ledger accounts and corresponding bills produced before me, I find that the above business loss claimed by the appellant assessee is on account of Supervision and Consultancy services - Rs. 6,00,000/- + Freight, transportation 8s Handling Rs. 2,24,932 + Bank Guarantee Commission Rs. 1,07,31,688/- + Professional & Consultancy Services paid Rs. 69,80,490/-, Telephone Expenses Rs. 1,32,487/- + Rs. 75,000/- Disallowance made in preceding previous year u/s 40(a)(ia), to be allowed during the year since tax paid during the year. These expenses are incurred by the appellant for the business activities of the assessee, and the assessee company has not yet been closed. In view of my above observations, as the assessment order has b....