Case Law Details
Kuiper Compagnons Rumtelikje Ordering Stedenbouw Architecture Landscape BV Vs DCIT (International Taxation) (ITAT Delhi)
Undisputedly, in the year under consideration, the project office of the assessee had claimed deduction of consultancy charges paid to two overseas entities as expenses. However, in course of assessment proceedings, the assessee was unable to furnish any cogent explanation supported by evidence to establish that the consultancy charges paid are not in the nature of FTS. Further, on perusal of the directions of learned DRP, it is observed that similar disallowance under section 40(a)(i) of the Act was made in assessment year 2011-12 in respect of similar payment and the assessee accepted the disallowance. Thus, the assessee having failed to controvert the concurrent finding of the departmental authorities to the effect that the consultancy charges paid are in the nature of FTS, we do not find any reason to interfere with the decisions of the departmental authorities. Accordingly, the disallowance made under section 40(a)(i) of the Act is upheld. Grounds are dismissed.
FULL TEXT OF THE ORDER OF ITAT DELHI
This is an appeal by the assessee against the final assessment order dated 21.10.2015 passed under section 143(3) read with 2016 section 144C(13) of the Income Tax Act, 1961, in pursuance to the directions of learned Dispute Resolution Panel (DRP).
2. When the appeal was called for hearing none appeared on behalf of the assessee.
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