9911796707
TMI Blog2019 (12) TMI 1330X X X X Extracts X X X X X X X X Extracts X X X X ..... section 40A(3) of the Income Tax Act. 3. In response to the notice of hearing, no one has come present on behalf of the assessee. With the assistance of the ld.DR, we have gone through the record carefully. It emerges out from the record that the assessee has filed return of income on 14.10.2010 declaring NIL income. An assessment order was passed under section 143(3) on 4.3.2013 determining total loss at Rs. 68,02,400/-. The case of the assessee was reopened on account of audit objection. Notice under section 148 of the Act was issued and served upon the assessee. In the re-assessment proceedings, the AO was of the opinion that the assessee has debited a sum of Rs. 4,35,000/- under the head "legal expenses". This payment was made to M/s.C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted before him has found that the assessee has paid Rs. 4,35,000/- to C. C. Gandhi & Co. as stamp duty, registration fee, typing, Xerox and miscellaneous expenses. The AO observed that although the assessee has furnished the Xerox copy of the bill raised and receipt furnished by C. C. Gandhi & Co., Ahmedabad but has not furnished any documentary evidences with regard to stamp duty, receipt of registration fee, typing bills, Xerox bills or any other misc. bills, from which it could be ascertained that above expenses incurred in cash were with regard to above expenditure. The AO also observed that the assessee has not given any supporting evidence with regard to the circumstances wherein the above cash amount was paid due to any exception o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenses for the purpose of completing the statutory requirements for taking the loan from SBI which was for the purpose of business. Since the payment towards stamp duty, registration fee etc. were made to the government through M/s. C. C. Gandhi & Co. and the same was covered under Rule 6DD(b) under the exception clause. Therefore, no disallowance upon the same is warranted. Merely no breakup of the aforesaid expenditure and the evidences could be submitted will not call for the disallowance. For taking the loans by the appellant for the purpose of business, the legal formalities were to be completed for which the major expenditure happens to be in respect of stamp duty and registration fee etc. Since the loan formalities have been .comple ..... X X X X Extracts X X X X X X X X Extracts X X X X
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