TMI Blog2007 (3) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... l') in I.T.A.No. 94/ (ASR)/2005 datedMarch 24, 2006, ( Davinder Singh v. Asst. CIT [2007] 290 ITR (AT) 306) in respect of assessment year 2001-2002 :- " a. Whether under the facts and circumstances of the case a sum of Rs. 282950/- Rs. 103613/- paid to Sh. Baljeet Singh Proprietor of M/S. Maya Cotton General Mills and Sardar Gurcharan Singh proprietor of M/S. Gee Ess Ahuja Cotton General Mills as sister concerns of the appellant are permissible deduction in computing the business income of the appellant or not ? b. Whether under the facts and circumstances of the case the order of the Tribunal is perverse by not dealing with the finding of the Assessing Authority and also that of the Commissioner of Income tax (Appeals) in respe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,563/-was refunded back to his two sister concerns owned by his father and brother to whom the assessee had sold the agricultural produce from his shop. The claim of the assessee was that it was because of the help by his father and brother that he was able to earn. The claim made by the assessee was rejected by the Assessing Officer and the entire amount, which was claimed to have been refunded, was added to the income of the assessee. The order passed by Assessing Officer on this account was upheld by the Commissioner of Income Tax (Appeal). In further appeal before the Tribunal, the order passed by the Assessing Officer was upheld with the following observations:- " We have heard both the parties and carefully considered the rival sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that those parties who sold the produce through the assessee were sent by them. As regards increase in the "DAMI' receipts over the years, there is nothing on record to show that the increase was due to the efforts made by the assessee's two sister concerns. In other words, there is no evidence whatsoever to support the claim of the assessee that they had rendered any services for which commission was paid when they did not even know them. As regards the payments assured by the sister concerns, there is also no evidence for the same. In any case, when they had made purchases, they were duty bound to make the payments. In fact substantial amounts of purchases made in the months of Nov., Dec. 2000 and Jan, 2001 through the assessee, the pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed." 3. Learned counsel for the assessee has raised three fold submissions, namely; (i) that in the previous and subsequent year, such type of claim by the assessee has not been disallowed, keeping in view the principal consistency, even during this year, the expenses deserves to be allowed; (ii) the provisions of Section 40A(2)(a) of the Act has not been given effect to as the authorities have failed to quantify the reasonable amount which was to be allowed/disallowed in the facts and circumstances of the case and (iii) that the judgment of Hon'ble Supreme Court in Mcdowell and Co. Ltd. Vs. Commercial Tax Officer (1985) 154 ITR 148 has been over-ruled by the Hon'ble Supreme Court in Union of India and another Vs. Azadi Bachao ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities below have not found the claim made by the assessee to be tenable at all. There was no question of quantification thereof. As far as the contention regarding consistency is concerned, such a plea having been raised before the Tribunal is not borne out from the paras 8 to 12 of the order where this issue has been dealt with. The judgment relied upon by learned counsel for the assessee also do not support the proposition canvassed by the assessee, as in the facts and the circumstances of the present case, the assessee was not able to substantiate his claim on the basis of the evidence produced before the authority. 5. In view of our above discussion, we do not find any merit in the present appeal and the same is accordingly di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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