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2019 (8) TMI 18 - HC - Income TaxAllowable business expenses u/s. 37 - payment of service charges - HELD THAT:- Unless and until the other test laid down by law are satisfied, the question of claiming the same as a deduction does not arise. In the instant case two authorities and the Tribunal concurrently disbelieved the case of the assessee and to say the least, the stand of the assessee was utterly false. Therefore, the question of claiming deduction does not arise. Hon'ble Apex Court in the case of Commissioner of Income Tax vs. P.Mohanakala [2007 (5) TMI 192 - SUPREME COURT] pointed out that when the finding of fact arrived by the authorities below were based on proper appreciation of facts, material available on record and surrounding circumstances, it would not call for any interference - doubtful nature of transaction and the manner in which the sums were found credited in the books of accounts maintained by the assessee had been duly taken into consideration by the authorities below and the transaction though apparent were held to be not real one. It was further pointed out that it may be the money came by way of bank cheques and paid through the process of banking transaction but that itself is of no consequence. This decision applies on all fours to the assessee's case where also the assessee pleaded that the amounts paid as service charges to those third parties should disclose the same in their income tax return. This can hardly validate such invalid and doubtful transactions. - Decided in favour of revenue.
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