Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (6) TMI 1291 - AT - Income TaxAddition on account of release of rights - reason why the same amount should be disallowed without appreciating the fact that the payments was made to M/s. Global Properties [ sister concern of the assessee] for business purposes. There is no intention of diversion of profits for saving of the taxes - without deducting TDS u/s 194J - HELD THAT:- Allowing of ₹ 60 lakhs paid by the assessee to M/s. Global Properties. We find that there is no dispute on the fact of payment of the said amount involving the banking channels. Nothing is brought on record to suggest that the money is repaid in cash form or otherwise to the assessee by M/s. Global Properties. It is also undisputed that both assessee as well as M/s. Global Properties are the taxpayers paying taxes at maximum marginal rate of taxes. The letter is undated, which is undisputed. There is no evidence brought on records by the AO to suggest that the said page is not genuine. In our view, the said payment of ₹ 60 lakhs to M/s. Global Properties constitutes a business transaction which was executed by the assessee in his wisdom as a businessman. Therefore, the decision given by the CIT(A), in our view is required to be reversed and in favour of the assessee. Considering the same, in our view, the adjudication of the other issue of invoking the provisions of section 194J/40(a)(ia) of the Act becomes an academic exercise. As such, there is no specific ground raised in this regard as seen from the grounds of appeal. Thus, the solitary ground raised by the assessee is allowed and in favour of the assessee.
|