2022 (3) TMI 66

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....assessee was supposed to follow up its appeals, however, separate notices were also issued regarding the fixation/date of hearing of the appeal by the Registry. However, the said notice has been received back with the remark "Left". Even the earlier Counsel for the assessee, Sri Subash Agarwal, Advocate was contacted telephonically who informed that he has no instruction on behalf of the assessee. In view of this, we have been left with no alternative than to proceed to decide the appeals of the assessee after considering the material on record and after hearing the Ld. D/R. 3. The assessee in these appeals have taken the identical grounds of appeal. ITA No. 1572/Kol/2018 is taken as lead case for the purpose of narration of facts and issu....

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....d order, wherein, the Ld. CIT(A) has held that though the assessee had claimed that the said payment was in fact reimbursement of expenditure to the concerned party, however no evidence was brought on record to prove that contention. The Ld. CIT(A), therefore upheld the disallowance made by the A.O. observing as under: "I have considered the submissions of the authorized representative of the appellant as well as the assessment order framed in the light of the materials available on record before the assessing officer during the assessment proceedings. The A.O. has mentioned that the payments were made without TDS so it is not allowable. The A.R. in his statement of facts has mentioned that it is reimbursement of expenses so it is allowab....

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....hat the impugned disallowance was made by the A.O. and further confirmed by the Ld. CIT(A) because the said expenditure was not incurred by the assessee for the purpose of business of the assessee, rather the said damages were paid because of the violation of the terms of the contract. The Ld. CIT(A), further observed that the assessee had not furnished any evidence for justification of the said expenditure. The relevant part of the finding of the Ld. CIT(A) is reproduced as under: "I have considered the submissions of the authorized representative of the appellant as well as the assessment order framed in the light of the materials available on record before the assessing officer during the assessment proceedings. The A.O. has pointed ou....