Dadaso Ashok Awati Vs ITO (ITAT Pune)
Unproved Consultancy Payments Disallowed: Failure to Establish Genuineness Leads to Addition
The Pune Bench of the Income Tax Appellate Tribunal (ITAT) upheld the disallowance of ₹40 lakh claimed as professional/consultancy/technical service fees, holding that the assessee failed to discharge the primary onus of proving the genuineness and necessity of the expenditure. The assessee did not appear before the Tribunal despite multiple opportunities, and the appeal also suffered from a substantial delay of 371 days.
On merits, the Tribunal noted that the Assessing Officer had rightly treated the payments to M/s Vibgyor Enterprises as non-genuine due to multiple deficiencies—absence of any written agreement, inability to specify the nature and purpose of services, non-compliance of notices under section 133(6) by the payee, and inconsistent payment narrations. The CIT(A)/NFAC, in a detailed speaking order, found that the assessee failed to establish the capability, experience, and creditworthiness of the payee to render services justifying such a large payment.
In the absence of any contrary material or evidence placed before the Tribunal, and considering the well-reasoned findings of the CIT(A), the ITAT held that the assessee had not met the statutory requirement to substantiate the claim. Accordingly, the disallowance was confirmed and the appeal was dismissed.
FULL TEXT OF THE ORDER OF ITAT PUNE
