ITAT Upholds Software Development Charges Under ITA, Rejects Sham Transaction Claims and Disallows Revenue's Conjecture

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....The ITAT upheld the genuineness of the software development and maintenance charges paid to TFMSS by the assessee trust, rejecting the Revenue's contention that the transactions were sham and intended to divert funds to related parties for personal benefit. The Tribunal found the payments were made at fair market value for substantive services rendered, supported by credible evidence including sworn statements and extensive email correspondence, which the lower authorities disregarded. The disallowance of business consultancy charges was also quashed, as the AO and CIT(A) failed to properly assess the claim and relied on conjecture without adequate evidence. The Tribunal noted inconsistency in the Revenue's approach across assessment years .........