MARVEL CONSUTLACY SERVICES,THANE vs. ADDL CIT RG 3, THANE

During hearing of this appeal, the ld. counsel for the assessee, Shri Devendra Jain, advanced his arguments which are identical to the ground raised by contending that M/s Nova Corporate Services Pvt. Ltd. acted as agent of the assessee in executing the projects for the last two years, however, due to shifting of address, the notices sent to the parties were returned back unanswered and further the assessee was in a position of obtain confirmation from said concern after completion of assessment proceedings. On the other hand, the ld. DR, Shri Vijay Kumar soni, strongly contradicted the claim of the assessee by contending that the claim of the assessee with respect to payment of commission is absolutely bogus and even the ware about of the parties were not known even to the assessee and further they were not produced before the Assessing Officer, consequently, genuineness of payment and services rendered by them could not be examined.

2.1. We have considered the rival submissions and perused the material available on record. The facts, in brief, are that the assessee is a partnership concern procuring and installing equipments in various industrial sectors like refinery, petrochemicals, fertilizers, power plants on commission basis, declared income of Rs.62,68,280/- in its electronically filed return on 29/09/2008 (Paper copy of the return was submitted on 08/10/2008), which was processed 3 M/s Marvel Consultancy Services 143(1) of the Act. Since, the case of the assessee was selected for scrutiny, consequently, required notices were issued to the assessee. The assessee attended and produced certain documents/details. The assessee shown to have received Rs.1,62,80,981/- out of which the amount of Rs.1.58 crores was claimed to be received on account of commission basis. The assessee also claimed expenses of Rs.71.39 lakhs on commission payments, therefore, the net profit was shown at Rs.64 lakhs. During assessment proceedings, the assessee was asked with respect to the commission paid to M/s Nova Corporation and also the other parties. The assessee claimed that all payments were paid through cheque and TDS was deducted. The Assessing Officer sent notices to these firms, which were returned back un-served. The assessee was asked to produce ware about of M/s Nova Corporation. As per the assessee, these parties could not be traced. Admittedly, onus is upon the assessee to prove the genuineness of the payment and mere deduction of TDS conclusively does not prove that payments were made for business purposes. The Bench asked a query with respect to confirmation letter dated 25/01/2011, with respect to M/s Nova Corporation Services Pvt. Ltd.. The ld. counsel explained that this letter was obtained after the completion of the assessment proceedings. It seems that the assessee was in touch with these parties even after completion of assessment but could not produce before Assessing Officer even repeatedly asked to do so. In view of this fact, we direct the assessee to produce the concerned parties before the 4 M/s Marvel Consultancy Services Assessing Officer so that the genuineness of the payment, work done by them can be examined. The assessee be given opportunity of being heard and further to produce evidence, if any, in support of its claim, thus, the appeal of the assessee is allowed for statistical purposes.