TMI Blog2012 (12) TMI 1108X X X X Extracts X X X X X X X X Extracts X X X X ..... rch Pvt. Ltd.. He observed that no evidence of any kind for work done by the related company has been produced. The Assessing Officer also noted that the three persons, who are Directors of the said company, are also member of the AOP of the assessee company. Accordingly, the Assessing Officer observed that without rendering any services, commission fees paid, was not justified. Accordingly, he disallowed. 4. It was submitted before the CIT(A) that the assessee AOP consists of twelve (12) Lintas Employees Welfare Trust, which is running a training centre at Khandala. There are 750 members of this trust. Since the assessee AOP was unable to run the institution alone, they hired the assistance of M/s North Point Training and Research Pvt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owever, as the members of the AOP were unable to obtain the clients and run the entire institution, they hired the services of M/s North Point Training and Research Pvt. Ltd. as per terms of the conducting agreement entered between the parties. An agreement was entered on 15-6-2004, copy of the agreement is placed in the paper book at pages 49 to 57. It was also explained that the assessee AOP has paid similar commission for earlier two years and assessment had been completed under Section 143(3). No such disallowance was made for those two years. Accordingly, it was submitted that in view of the consistency also, the disallowance made by the Assessing Officer, which is confirmed by the CIT(A), is not justified. 6. On the other hand, lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO. The assessee has explained that the same services were rendered by the Conductor, however, the same was not accepted. I noted that a certificate from the Conductor M/s North Point Training and Research Pvt. Ltd. is placed on record, by which it has been stated that they have been appointed for the following services :- 1. To obtain clients and business for Northpoint Centre of Learning when Centre is not in use by Lintas India Private Limited. 2. To manage the properties and facilities of training and research of the Centre. 3. To manage training and research activities for development of knowledge and skills through training research. 4. To obtain licenses/permissions for day to day management of the Centre and its ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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