2023 (2) TMI 518

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....2008-09 arising out of an appeal before it dated 29.12.2008 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as 'the Act') by the ld AO, ADIT, Circle-1(1), Intl Taxation, New Delhi (hereinafter referred as the Ld. AO). 2. The facts in brief are that the appellant is a company incorporated under law's of Spain having its registered office at Madrid and hence non-resident for tax purpose. It is engaged in business of designing, engineering, erection, maintenance, installation of projects in field of power, telecommunications, irrigation arid sanitation. The appellant is executing a project in India as a part of consortium namely ICE consortium consisting of three partners viz. Appellant, M/s IRCON International Ltd. ....

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....te documents and hence disallowed these payments. In addition, the AO disallowed claim of the appellant under head office expenses to the tune of Rs. 49,98,291. The AO has made assessment at Nil income and has computed tax payable u/s 115JB. The appellant challenged these additions in appeal before Ld. CIT(A). As for Assessment Year 2006- 07, the appellant has filed return of income. The AO in his order u/s 143(3) made similar disallowances as made for Assessment Year 2005-06 and the appellant had challenged the disallowances in appeal before Ld. CIT(A). 5. The assessee is in appeal raising following grounds in ITA no 6601/Del/2013:- 1. That on the facts and circumstances of the case and in law, the order passed by CIT (A) is co....

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....IT (A) is not correct." 7. Heard and perused the record. 8. At the time of argument, it was submitted that in regard to disallowance of Engineering Expenses for non-deduction of withholding taxes by applying the provision of section 40A(i), vide letter dated 04.08.2022 the ld AR has not pressed the ground in respective appeals, Further, regarding the disallowances of Head Office expenses issue has been decided by CIT(A) in favour of the assessee against which the Revenue has not filed any appeal. So that is redundant. The only issue now contested before us is with regard to disallowances of engineering expenses paid by the assessee to its head office. 9. It was submitted on behalf of the assessee that the ld Tax Authorities Below h....

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....t was very much in domain of the AO to examine the genuineness of the transaction beyond the limit of TPO. 12. Giving thoughtful consideration to the matter on record the bench is of considered opinion that the sheets attached with debits noted available at pages 124 to 144 of Paper book, Volume-3 for Assessment Year 2005-06 and pages 103-114 of Paper Book, Volume-3 for Assessment Year 2006-07 establish that the name of the employees along with the nature of duties and number of hours apportioned have been have been made part of the debit note. The ld. Tax Authorities below have over stressed on non-production of time log sheets without finding any shortcoming and fallacy into the information already available and provided. The bench is ....