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2013 (10) TMI 703 - AT - Income TaxDisallowance of Commission expenditure – Foreign traveling expenses - genuineness of expenditure - diversion of income - Held that:- Thus a full- fledged exercise was to be carried out by the assessee and its agent as per MOU for rendering the services and earning the commission - No record or evidence what-so-ever has been produced to this effect. The assessee has utterly failed to demonstrate the nature, extent of service rendered by the agent and availed by the assessee for its business of modular kitchens - what appears on record is merely book entries coupled with TDS the amount which will be claimed as a refund by the recipient being a loss making concern - the assessee has produced only skeletal paper work of the arrangement without any iota of evidence about actual business services rendered. CIT Vs. Imperial Chemical Industries Ltd. [1969 (2) TMI 15 - SUPREME Court] - the burden of proving that a particular expenditure has been laid out or incurred wholly and exclusively for the purpose of business is entirely on the assessee - The discharge of the burden has to be effective and meaningful and not to cover up by merely book entries and paper work – there was no infirmity in the order of lower authorities in making this disallowance which is upheld – Decided against Assessee.
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