TMI Blog2006 (4) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... Futuristic Communication Ltd. (HFCL) in connection with the setting up a cable unit for benefit of the latter. Against the said amount, the assessee debited a sum of Rs. 65 lakhs on account of consultancy/service charges which were according to it paid by the assessee to M/s. IST Ltd. who had actually undertaken the work allotted by HFCL. The Assessing Officer enquired into the question whether t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was IST Ltd. equipped with highly skilled and semi-skilled staff and engineers but the work assigned to IST Ltd. had actually being executed by it. It was also demonstrated before the Commissioner that tax had been deducted at source at the time of payment of Rs. 65 lakhs to IST Ltd. which payment was made through banking channels. The Commissioner was on the basis of the said material persuaded t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulted in a tax deduction at source of a sum of Rs. 2,87,500 paid to the Central Government. The Tribunal observed: "We also observe that the Assessing Officer has included the sum of Rs. 75 lakhs claimed by the assessee to have been received from HFCL as income but has not allowed the expenses of Rs. 65 lakhs claimed by the assessee in the execution of the contract. The learned AR of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecuted by M/s. IST Ltd. the associated concern of the assessee, as the assessee did not have the manpower and capacity to execute the work. It is the submission of the assessee that by executing the said contract the assessee has earned Rs. 10 lakhs as income. Had the assessee not undertaken this contract then it would not have earned the said income of Rs. 10 lakhs from the transaction. It is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eals) and reject the ground of appeal of the Revenue." Having heard Ms. Bansal counsel for the Revenue, we are of the view that the concurrent findings of fact recorded by the Commissioner of Income-tax and the Tribunal concluded the matter. The facts as found, by the two authorities leave no room for this court to examine the question whether the expenses claimed by the assessee had in fact bee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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