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2016 (6) TMI 691 - ITAT KOLKATATDS u/s 194J - Non deduction of Tax at Source on consultancy & accounting charges - genuineness of expenses - Held that:- Expenditure claimed by the assessee under the head consultancy & accounting charges does not represent the professional services as explained under section 194J of the Act. Merely the assessee has claimed the nomenclature under the head consultancy will not amount to professional services. No doubt the services given by the CA firm to its clients in the instant case amounts to professional services but the services availed by the firm from outside for the physical verification of stock do not amount to professional services. Hence the payments made are covered under the provisions of section 194C of the Act. We also further find that in none of the case, the payment has exceeded ₹ 50,000/-, We also find that 28 persons had made representation before Income Tax Authority and the ld. AR has submitted the copies of income tax returns along with PAN of various persons. We accordingly, considering the totality of the facts of the present case, we are inclined to reverse the orders of Authorities Below. - Decided in favour of assessee Disallowance out of office expense - Held that:- Assessee has shown reimbursement of expense for an amount of ₹ 8,39,858/- exactly as against the receipt of ₹ 8,39,858.00. The AO during the assessment proceeding observed that in support of the expenditure self-made vouchers were available and in some cases there was no voucher available. The AO accordingly opined that personal expense cannot be ruled out and he made the addition @ 20% at ₹ 8,39,858/- which was reduced by Ld. CIT(A) at 10%. From the facts of the case, we find that AO has not brought out any specific ground so as to disallowing the expense as claimed in assessee’s profit and loss a/c. He has disallowed the expenses on ad hoc basis without appreciating the fact that income shown by assessee in the form of reimbursement of expense and expenditure claimed in the form of reimbursement expenses are equal. Therefore, in our considered view, the question of having any income out of reimbursement of expense does not arise. Therefore, we are inclined to reverse the orders of Authorities Below - Decided in favour of assessee
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