2012 (12) TMI 1207

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....aised the following two grounds:- "1. On the facts and circumstances prevailing in the case and as per provisions of the Act, it be held that the demand notice and assessment order served on the appellant dt. 7-1- 2010 is barred by limitation and is ineffective and not enforceable in law. The Assessment order and the demand notice received by the Appellant beyond the prescribed time limit be set aside. The appellant be granted just and proper relief in this aspect. 2. On the facts and circumstances prevailing in the case and as per provisions of the Act it be held that, the income assessed at gross amount of ₹ 26,48,586/- without granting any deduction on account of expenses is improper, unjustified and contrary to the scheme and ....

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....work but it was received as brokerage/commission for services rendered by the assessee to M/s. Soktas India Pvt. Ltd., for purchase of land at MIDC, Gokul Shirgaon, Kolhapur. Apart therefrom, the Assessing Officer also concluded that the assessee firm was not required to incur any major expenses as claimed in the Profit & Loss Account for such services rendered to M/s. Soktas India Pvt. Ltd. Therefore, the Assessing Officer considered the amount received from M/s. Soktas India Pvt. Ltd., of ₹ 26,48,586/-, as commission received for services rendered and the claim of assessee for expenses incurred was rejected in toto, thereby, he assessed to tax the entire amount of ₹ 26,48,586/- received as professional receipts. 5. In appeal ....

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....and further the mandatory deduction on account of payment of interest and salary to the partners should also be allowed. 7. On the other hand, the learned DR appearing for the Revenue has defended the orders of authorities below by placing reliance on the same and pointing out that the onus was on the assessee to establish the genuineness of the claim on account of expenditure incurred to earn such income. 7. We have carefully considered the rival submissions. In so far as the nature of amount received from M/s. Soktas India Pvt. Ltd. is concerned, we find that the Revenue has clearly established that the same does not carry the character as portrait by the assessee in its return of income. In terms of the verification exercise carried ou....

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.... expenditure whatsoever has been incurred by the assessee to earn such professional receipts. Pertinently, the inquiries made by the Assessing Officer itself showed that the assessee had indeed rendered the professional services to M/s. Soktas India Pvt. Ltd., for purchase of land and the same would certainly entail incurrence of expenditure by the assessee. Having regard to the facts and circumstances of the case, such a claim for expenditure is required to be estimated and during the course of hearing, the learned counsel for the assessee submitted that the same be estimated at 50% of the total receipts. In our considered opinion, having regard to the entire conspicuous of facts and circumstances of the case, it would not be appropriate t....