Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (6) TMI 517 - AT - Income TaxIntroductory Commission & Professional fees - disallowance of claim - Held that:- The assessee-company has failed to furnish an iota of evidence qua services, (even the nature & scope of which remains indeterminate), and which it is required to reasonably prove, i.e., beyond reasonable doubt, to press for a valid claim u/s.37(1) - exhibit the assessee to be hand-in-glove with Shri Sandeep Sitani in executing these paper transactions who admitted that no real business was being conducted in the said companies, and that they were only issuing bills for a commission of 0.25%. The payments received were paid back to the beneficiaries after retaining commission, and in most cases through the brokers. At times, even signed cheque books were left with the brokers/agents to facilitate the work, so that the same could be used by them at their convenience, and the tedium involved in withdrawing cash and remitting it back to the beneficiary company, saved. The directors in these companies, as Shri Pradeep Prajapati and Shri Dinanath Yadav were in fact paid employees with nominal salaries, acting on his instructions. They were men of no means without any technical qualifications; rather, hardly literate. Their separate statements were also recorded independently on oath, whereat they confirmed what had been stated by Shri Sandeep Sitani, also admitting to knowing nothing about the business activities of the firms in which they were directors/proprietors. Agreeing with the finding of the Revenue of the impugned transactions as being not genuine and representing bogus claims of expenditure. Further, the assessee's reliance on a comparative chart, showing its gross profit for the year to be comparable and, rather, better than for the other years, is of no consequence inasmuch as what is being impugned is the disallowance of expenditure u/s.37(1). The impugned disallowance is not based primarily on the basis of statement of Shri Sandeep Sitani, but on a consideration of the entirety of the facts and circumstances of the case. There has been rather a complete failure on the part of the assessee to prove the transactions. In fact, the assessee has not even led primary materials in the form of agreements, project reports and confirmations from the clients introduced, etc. It has not shown in any manner as to how the statement of Shri Sandeep Sitani, which is corroborated by the surrounding facts and circumstances of the case, is not correct. The said reliance is, therefore, again misplaced - the assessee's appeal is dismissed.
|