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2015 (12) TMI 1362 - AT - Income TaxDisallowance of contractor expenses - whether payment made to sub-contractors are bogus - Held that - Assessing Officer cannot substitute his own standard of reasonableness of expenditure for that of the assessee as the assessing authority has not brought anything to show that the assessee adopted colourable or illusory or fraudulent means to reduce the profits to show the expenditure. In our opinion in the present case the assessee proved the genuineness of the payment by producing cogent evidence including identity of the parties alongwith payment details and the burden cast upon the assessee was discharged as there is no evidence to suggest the bogus nature of the expenditure and the conclusion of the Assessing Officer is based on the presumption to reach the conclusion that the payment are not genuine it cannot be upheld. Further the assessee is able to show the commercial expediency to incur the expenditure for the purpose of business and incurring of expenditure also confirmed by the respective sub-contractors and they have received payments through banking channel in subsequent assessment years. Hence we have no hesitation in confirming the order of the Commissioner of Income Tax (Appeals) - Decided against revenue
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