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2020 (1) TMI 1304 - AT - Income TaxDisallowing sub-contract expenditure claimed in the name of separate entity - bogus expenditure - HELD THAT:- The assessee has given explanation, which has not been found to be untrue or false but has been rejected only on the basis of preponderances of probabilities. AO has not given any finding that M/s. Makeway Consultancy Pvt. Ltd. has not raised bogus bills in the name of the assessee company without doing any work for them. By accepting the contract receipt disclosed by the sub-contractor and by giving credit of tax deducted by the assessee company, the AO has accepted the fact that the sub-contractor do exists and executed the work, for which the payments though could not be made in this assessment year were paid in the subsequent assessment years. Assessee company cannot be blamed and its genuine expenses cannot be disallowed on the ground that why the sub-contractor has not filed return of income voluntarily. Before us also no specific error in the order of the CIT(A) could be pointed out by ld. D.R. No good reason to interfere with the order of the CIT(A), which is hereby confirmed and ground of appeal of the revenue is rejected.
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