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2023 (8) TMI 1174 - AT - Income TaxAddition of 20% of expenses incurred for services rendered - CIT (A) accepting the claim of the assessee that there was no profit element involved in the transaction wherein the assessee had provided a highly technical and professional services to the other party, that too by utilising its own funds - HELD THAT:- As decided in own case [2020 (11) TMI 868 - ITAT MUMBAI] unless the officer was able to come to the conclusion, on the material before him, that the assessee had really made profits in the transaction, it was not permissible for him to add any fictional income to the assessee's return. In the absence of any evidence to show either that the sales were sham transactions or that the market prices were in fact paid by the purchasers, the mere fact that the goods were sold at a concessional rate to benefit the purchasers at the expense of the company would not entitle the income-tax department to assess the difference between the market price and the price paid by the purchasers, as profit of the company. Thus direct the learned assessing officer to delete the addition made in this year being 20% of the expenditure incurred by the assessee. Accordingly, the order of the learned CIT – A is confirmed and appeal of the learned assessing officer is dismissed.
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