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2016 (11) TMI 800 - HC - Income TaxAllowance of payment made towards sub-contractors - genuity of expenditure - Held that:- In the instant case, the work said to have been executed by the sub-contractors is not found as unconcerned or unconnected to the work undertaken by the assessee and hence the claim of payment made for such work by the sub-contractors deserves to be accepted as a genuine expenditure incurred by the assessee. All payments made through banking channel need not be treated as genuine automatically on their face value. Each such transaction ought to be independently examined and considered and no formal conclusion can be drawn about the genuineness regarding the obligation to effect the said payment merely because the payment was effected through a banking channel. In the instant case, we are satisfied that the assessee has produced necessary material before the Commissioner of Income-tax (Appeals), during the course of hearing of the appeal against the order of the Assessing Officer, relating to sub-contracting a part of his work. There is nothing to doubt, in such circumstances, regarding the genuineness of payments effected through banking channels in favour of the two sub-contracting agencies. - Decided in favour of assessee
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