2023 (2) TMI 554

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....ch is arising out of the assessment order framed u/s 143(3) of the Act dated 28.12.2017. 2. The assessee is in appeal before this Tribunal raising the following grounds: "1. (a) That on the facts and in the circumstances of the case, Ld. CIT(A) has erred in not adjudicating rent payment of Rs. 3,30,000/- to parties by banking mode out of total disallowance of Rs. 6,97,500/-. (b) That on the facts and in the circumstances of the case, Ld. CIT(A) has erred in not mentioning Rs. 3,67,500/- (being balance of disallowed rent of Rs. 6,97,500/-) though agreed and actually allowed by him in his order. 2. That on the facts and in the circumstances of the case, Ld. CIT(A) has erred in confirming the disallowance of 48,92,421/- on account of te....

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....lected for scrutiny through CASS followed by serving of notices u/s 143(2) & 142(1) of the Act. Submissions filed by the assessee were considered and after making various disallowances of the expenses, ld. AO assessed the income at Rs. 78,23,138/-. 4. The assessee preferred appeal before ld. CIT(A) and got part relief. 5. Aggrieved, now the assessee is in appeal before this Tribunal. At the outset, ld. Counsel for the assessee requested for not pressing ground nos. 3(a), 3(b) & 3(c). Therefore, the same are dismissed as not pressed. 6. As regards the remaining disallowances, ld. Counsel for the assessee stated that the disallowances confirmed by ld. CIT(A) are mostly ad-hoc in nature and both the ld. authorities failed to consider that b....

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....ng a private limited company of which books of accounts are regularly audited and has paid the rent through account payee cheque and permanent account numbers of all the three parties are duly submitted, we find no reason to doubt the genuineness of the said claim. Therefore, the disallowance at Rs. 3,30,000/- is deleted. Hence ground no. 1 [1(a) & 1(b)] raised by the assessee is allowed. Ground No. 2 : 10. This ground relates to disallowance of technical service charges at Rs. 48,92,421/-. The said amount was paid to Bhavishya International towards the consultancy charges from April, 2014 to March, 2015 but the contents of the bill were not clear as to whether they pertain to the year under consideration. When the matter travelled befor....

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....disallowance of statutory audit fees at Rs. 3,42,000/-. In the profit & loss account assessee has claimed legal and professional fees of Rs. 5,49,405/- which included sum of Rs. 3,42,000/- on account of statutory audit fees for the FY 2014-15. Ld. AO treated the said sum as provision and disallowed the same. Even ld. CIT(A) could not appreciate the fact that as per the mercantile system of accounting, the assessee has rightly claimed the statutory Audit fees as expenditure for the year to which it pertains. The alleged statutory audit fees was for the FY 2014-15 i.e. AY 2015-16 for which the audit work is to be carried out from the close of the year till the finalization of the balance sheet and profit & loss account. In our considered view....