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2010 (12) TMI 914 - ITAT, MUMBAIDisallowance u/s 40A(2)(b) - as per AO there was a phenomenal increase in the expenses under this head compared to A.Y 2005-06 which was only Rs.50,000/- as against Rs.18,00,000 in the present A.Y., when all the factors for conducing the business in the present Assessment year also existed without any noteworthy change - Held that:- It was the claim of the Assessee that M/s. Kukreja Services Pvt. Ltd. incurred all the expenses relating to the building i.e. payment rent, electricity charges, security expenses, gardening expenses, computer expenses, accountant and all the other maintenance expenses and that the business centre charges was on account of office premises with all facilities provided by M/s. Kukreja Services Pvt. Ltd. The assessee did not provide any material by way of bills raised, correspondence, etc. to enable AO to verify whether any services were rendered by Kukreja Services Pvt. Ltd. to warrant the payments. In fact only the Profit and Loss account and Balance Sheet of M/s.Kukreja Services Pvt. Ltd. was been filed but no details of what services were rendered and how M/s. Kukreja Services Pvt. Ltd. has allocated the expenses to its sister concern/related parties have been filed. There is no consistency in the allocation of expenses by the said M/s. Kukreja Services Pvt. Ltd. Even before the tribunal, the Assessee has not produced any evidence to substantiate the increase in payment of charges in this A.Y. compared to the earlier year. The submissions made before us are very general without any supporting evidence. In these circumstances it would be appropriate to set aside the order of CIT(A) on this issue and remit the issue to the AO for fresh consideration and affording the Assessee an opportunity of letting in evidence to substantiate the submissions made before us.
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