TaxTMI 
TaxTMI 
2024 (8) TMI 1229
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.... gain'. At the assessment stage, a disallowance of Rs. 2,59,97,824/- was made u/s 37(1) of the Income Tax Act, 1961 (in short the 'Act') on the finding that the assessee had failed to submit documentary evidences to confirm the genuineness of expenditure booked. It is recorded by the Assessing Officer (hereinafter referred to as ld. 'AO') that this case was selected for scrutiny and one of the reasons for the said selection were large payments made u/s 194(C) of the Act to persons who have not filed return of income. It is seen that the Income Tax Department was in possession of information that even though tax had been deducted u/s 194(C) of the Act to certain vendors but some recipients have not filed their returns of inco....
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..... On the basis of this finding, he further gave relief of an amount of Rs. 38,03,998/- pertaining to five more parties. However, he proceeded to confirm the remaining addition which was an amount of Rs. 1,80,01,565/- (impugned amount). 1.3. Aggrieved this action, he has approached the ITAT through the following grounds of appeal: "1. For that the Ld. CIT(A), NFAC erred in confirming the addition to the extent of Rs. 1,80,01,565/- incurred towards business expediency on account of expenditure incurred towards various heads; testing & commissioning, security services, repairing, loading & unloading, labour charges, installation charges, freight expenses, etc. when the Income earned from corresponding activities remain undisputed. ....
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.... notice dated 24/04/2021 103-126 Y Y 11 Reply letter to AO against Show cause notice dated 12/08/2021 127-137 Y Y 12 TDS deduction chart wrt. disallowed parties with sample Form 16A 138-152 Y Y 13 Summary list wrt. Installation charges, Labour charges, Loading & Unloading charges, Repairs & maintenance charges, Security charges & Freight charges 153-161 Y Y 14 Security charges sample Invoices 162-163 Y Y 15. Summary of transaction carried since FY 2014-15 164 Y Y 16 Asst, order u/s. 143(3) for the AY 2015-16 165-172 Y Y 17 Common parties involved for the AY 2015-16 ....
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..... D/R relied on the order of ld. CIT(A) to canvas the point that the ld. CIT(A) had fairly allowed relief on certain amounts and that is where the matter should rest. 3. We have carefully considered the rival submissions as also the documents placed before us. It is understood that the income under the head 'business and profession' would be earned by making certain relevant expenditure. While demonstrably unjustified expenditure could be disallowed, but it is also clear that there are limits to the kind of documentation and evidences that a normal business would be expected to maintain. In this case, the assessee has adequately demonstrated that he has meticulously maintained documents and even deducted tax at source on the payments mad....
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....med payment to a company for management consultancy services - Assessing Officer treated payment as bogus transaction and disallowed claim holding that said shell entity was non-existent at its registered address - On appeal, Commissioner (Appeals) noted that assessee had availed services of consultant in connection with contract awarded by BHEL; and that such payments were made by account payee cheques and payment included service tax on invoice and payee was duly registered with service tax department - Commissioner (Appeals) further noted that transaction took place in financial year 2012-13, relevant to assessment year 2013-14, whereas enquiry was sought to be conducted for year 2016- 17, by which time payee company had been struck off ....