TMI Blog2007 (5) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... he DOT and MTNL because DOT and MTNL were not directly involved. With regard to the names and addresses of the persons with whom the assessee interacted, it was stated by the assessee that there has been a lot of changes in the structure of M/s. SFL Industries Ltd. and details and whereabouts of the employees of M/s. SFL Industries were not available with the assessee. The assessee even did not file the copy of relevant bank account of M/s. SFL. The assessee also failed to explain as to what was the nature of the services provided by M/s. SFL, and no correspondence in this regard has been produced by the assessee in spite of specific opportunities granted. No fault can be found with the view taken by the Tribunal. Thus, the order of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o one M/s. SLF Industries Ltd. The Assessing Officer wanted the details of the commission paid along with names and addresses of the persons and the Directors of the company to whom the commission was paid. The assessee was also called upon to disclose the nature of services rendered and as to how the services so rendered helped the assessee in improving its sales. 3. The assessee claimed that M/s. SLF Industries Ltd. was engaged for procuring order from DOT and MTNL. The assessee also claimed that the business with DOT and MTNL involves cumbersome process and required extensive liaisoning with over 500 circles situated throughout the country. Since M/s. SLF Industries Ltd. had large network all over India and has sufficient experience i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. Further, the assessee could not furnish the address of M/s. SFL Industries Ltd. and the notice sent by the Assessing Officer to the address given by the assessee remained unserved and as such Assessing Officer drew adverse inference against the assessee for non furnishing the new and correct address of M/s. SLF Industries Ltd. Thus, the Assessing Officer disallowed the claim of the assessee for deduction of the aforesaid sum for the abovementioned assessment years. 5. Aggrieved against the order passed by the assessee, he filed an appeal before the Commissioner of Income-tax (Appeals) who called for a remand report from the Assessing Officer but the assessee could not furnish the confirmation from DOT and MTNL on the ground th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... racted, it was stated by the assessee that there has been a lot of changes in the structure of M/s. SFL Industries Ltd. and details and whereabouts of the employees of M/s. SFL Industries were not available with the assessee. The assessee even did not file the copy of relevant bank account of M/s. SFL. The assessee also failed to explain as to what was the nature of the services provided by M/s. SFL, and no correspondence in this regard has been produced by the assessee in spite of specific opportunities granted. 9. Relevant findings given by the Tribunal with regard to the fact that assessee was given due opportunity but he could not produce the requisite information before the Assessing Officer are reproduced as under:- We have al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terms of the agreement to pay Commission, M/s. SFL was only to procure orders whereas in the letter dated 30-11-1994 the assessee calls upon M/s. SFL to resolve other disputes regarding deferment of supply by DOT, Bangalore. Besides the above, there is not even correspondence and list of orders procured for assessment year 1996-97. Considering the facts and circumstances and the evidence available on record, we are of the view that the assessee had failed to explain the expenditure in question was wholly and exclusively for the business of the assessee. Consequently the revenue authorities were justified in disallowing the claim. Orders of the revenue authorities do not call for any interference. 10. The above being the position, no f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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