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2022 (11) TMI 413 - AT - Income TaxAssessment u/s 153A - validity of Reopening of assessment u/s 147 - HELD THAT:- An assessment order under section 153A r.w.s 143(3) of the Act does not deal with the materials other than incriminating material found during the search. Assessee’s claim that he has already disclosed the amount debited and paid to JIPL was duly reflected in the books of accounts and verified also by the AO is not correct. For verification other than amount debited in the books of accounts nothing was there like agreement of consultancy, reports prepared by consultant or any other material which substantiates the genuineness of the expenditure. It is only after a report from DDIT (Inv.) Unit-1(3), Mumbai dated 24.03.2014 was received against an enquiry conducted on JIPL with reference to a Tax Evasion Petition filed against JIPL. With reference to this report various people from assessee’s side and JIPL were examined on oath with relevant agreement, etc. Claim of the assessee that action under section 147 is merely a change of opinion, hence not tenable is unwarranted in the light of report of DDIT (Inv.) Unit-1(3), Mumbai and contradictory statements given by various persons of both the sides, we found action of the AO under section 147 of the Act as legitimate one and original Ground No.1 and Additional Ground Nos. 1 & 2 are dismissed. Disallowance of professional fee paid - genuineness of expenses - Amount debited to WIP in the balance-sheet - HELD THAT:- Where the payment to a consultant (JIPL) was being made in crores of rupees over the period, it is highly inconvincible that with reference to services rendered there is not even a single document /report/communication ever submitted by assessee. Even a layman will not convince that after paying crores of rupees over the period to consultant assessee is not in possession of any document in the form of report/advice/road map/blueprint about the project, company, HR matters, Legal matters, financial matters, Engineering Services etc. Assessee’s counsel vehemently argued the matter but despite of bench’s specific reference about the reports of deliverables his reply was not satisfactory. In the lights of above observation at all the forums including ITAT, we are of the firm view that this claim of the assessee is liable to be rejected and order of the Ld. CIT(A) is in right perspective requires no interference. Original Ground no- 2 of the assessee is dismissed. Expenses claimed towards consultancy charges - HELD THAT:- Assessee never produced before any form evidence of expenses claimed towards consultancy charges paid to M/s. JIPL. In our humble opinion there is no flaw in the order of AO as far as following the direction in the case of Asian Paints Ltd. [2007 (1) TMI 159 - BOMBAY HIGH COURT] and directions of Hon’ble Supreme Court in the case of M/s. GKN Driveshaft (India) Ltd. [2002 (11) TMI 7 - SUPREME COURT] In view of the above we don’t agree with additional ground of appeal no. 3 raised by the assessee, hence dismissed.
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