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2019 (12) TMI 699 - HC - Income TaxBogus purchases - AO disallowed the web advertisement expenses and the depreciation claimed by the respondent assessee in respect of software purchase - proof of actual use of software - reliance on the statement of accommodation entry provider - HELD THAT:- Addition was only made by the assessing officer on the statement of Shri SK Gupta, without affording any opportunity for cross examination. In the Present case, the assessing officer has made detailed enquiry. De hors the statement of Shri SK Gupta, assessee has failed to show that it has incurred expenditure for web advertisement and purchased the software. Further, we did not find the observation of the coordinate bench with respect to the non-availability of technology on which websites were developed, as well as the nonexistent websites of the advertisers and also the basic details called for by the AO with respect to software development lifecycle. In the present case, order of the assessing officer has clearly made further allegations and proved conclusively that the expenditure is bogus. This Court in Alpasso Industries (P) Ltd. v. Income – Tax Officer [2018 (8) TMI 761 - DELHI HIGH COURT] rejected a similar submission of the appellant/ assessee and, while doing so, this Court reiterated the legal position as to when a finding of fact could be classified as perverse.
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