TMI Blog2009 (10) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... ature of the agreement, it is clearly a consultancy services agreement - , it is clear that the consultants had agreed to provide consultancy services in connection with the administration and management of the showroom. The appointment was in connection with the running of the music shop on the terms and conditions as set out in the said agreement – expenses allowed. - 968/2009 - - - Dated:- 15-10-2009 - A.K.SIKRI and SIDDHARTH MRIDUL JJ. ITA 968/2009 with ITA 999/2009 Mr. Satyen Sethi with Mr. Johnson Bara, Advs., for the appellant. Mr. Sanjeev Sabharwal, Adv., for the respondent. JUDGMENT The judgment of the court was delivered by A.K. SIKRI, J. - Appellant, who is engaged in the business of trading in music/v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the licensor to enter into agreement with M/s Raas Consultants Company. Finding that in fact no consultancy services were provided by the said consultants, the Assessing Officer disallowed the aforesaid expense. 3. The CIT(Appeal), however, reversed this finding holding that it was the Assessee's compulsion to incur such expenditure and even if Mrs. Hina Jetha had not provided any consultancy services, it was clear from the clauses of the agreement that this agreement was to run concurrently with the lease agreement for the premises and also co-terminus with the license dated 2nd July, 2001 executed between Mr. Vimal Jetha and the Assessee. Therefore, for all practical purposes the payment of consultancy fee was nothing, but pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... officer, the law required the assessing officer to bring contrary evidence on record to prove otherwise. The legal position is settled in this regard. It is an admitted fact as apparent from order of CIT (Appeals) was wrong in concluding that the assessing officer failed to bring any material on record to prove that the claim of payment was bogus or the funds were diverted back to the assessee. Since there is no clause in the deed of license compelling the assessee to make payment to Mrs. Hina Jetha nor any services having been rendered by Mrs. Hina Jetha to the assessee, the ld. CIT (Appeals) was not justified to concluded that the expenditure was incurred for acquisition of the premises and related to the business of the assessee. Accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een filed by the appellant as Annexure-A in these appeals. It is termed as "Consultancy Services Agreement". Further, in consideration of a sum of Rs.1,41,000/- per month payable by the Assessee to the said consultants, the agreement stipulates that following kinds of services shall be provided by the consultants: "1.2 "Services" means consultancy services being provided by M/s Raas Consultants Company in connection with the administration and management of the showroom to M/s Neo Planet. …………… 2. Appointment M/s. Neo Planet hereby engages M/s Raas Consultants Co. to provide Consultancy Services to M/s Neo Planet in connection with the running of the music shop, on the terms and conditions as set forth in this Agreement. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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