TMI Blog2016 (3) TMI 1379X X X X Extracts X X X X X X X X Extracts X X X X ..... tisfied with the quality of service. AO has not doubted about the genuineness of the expenditure, but was suspicious about the reasonableness of the expenditure. However, since the expenditure has been incurred by the assessee out of commercial expediency and since the payments have been made by the assessee in accordance with the agreed terms, it is not correct on the part of the AO to question the correctness of the decision taken by the assessee out of commercial expediency. Accordingly, we are of the view that the Ld CIT(A) was justified in deleting the impugned disallowance. - Appeal filed by the revenue is dismissed. - I.T.A. NO. 1024/MUM/2014 - - - Dated:- 1-3-2016 - SHRI B.R. BASKARAN (AM) SHRI RAM LAL NEGI (JM) As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purposes. The AO also noticed that Shri Aditya Mitra Anand was carrying on other businesses also and he was also a director in a company named M/s Cimic Tech India Pvt Ltd. The AO took the view that M/s Cimit Tech India Pvt Ltd is a group company of the assessee. The AO further took the view that Shri Aditya Mitra Anand does not have expertise in the field, since he has used the services of M/s First Canvass for the valuation purpose. Accordingly the AO took the view that the professional fee paid to him is excessive and unreasonable. Accordingly the AO allowed professional fees to the extent of ₹ 37,97,768/- and disallowed the remaining amount. 3. In the appellate proceedings before Ld CIT(A), the assessee contended that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x authorities. The AO has taken the view that one of the companies, in which Shri Aditya Mitra Anand is a director, is a group company of the assessee and accordingly tried to establish a case that the payment of professional fee was made to a known person at a excessive figure. The said observations of the AO have been strongly refuted by the assessee by submitting that neither Shri Aditya Mitra Anand nor the company in which he is a director can be treated as specified persons listed out in sec. 40A(2)(b) of the Act. There should not be any doubt that the Income tax Act requires that the question as to whether an expenditure is excessive or unreasonable has to be examined in respect of payments made to persons specified in sec.40A(2)(b) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dition out of suspicion and inferences. As submitted by Ld A.R, it is quite common for any professional to avail the services of another professional while executing his professional assignment. Hence the services of M/s First Canvass availed by Shri Aditya Mitra Anand, in our view cannot be used by the AO to question the quantum of payment. It is also pertinent to note that the agreement is between the assessee and Shri Aditya Mitra Anand and the assessee shall normally expect the quality professional services from him, i.e., any businessmen shall not be bothered as to how the professional assignment is executed so long as they were satisfied with the quality of service. 7. The ld A.R also contended that the commercial decisions take ..... X X X X Extracts X X X X X X X X Extracts X X X X
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