Surya Homes Vs ITO (ITAT Bangalore)
ITAT Bangalore remitted the matter back to CIT(A) so that assessee can file necessary documents with regard to disallowance made under section 37 of the Income Tax Act as order was passed by CIT(A) without adjourning the matter as sought by assessee.
Facts- During assessment proceedings, AO noted that assessee has made payment to Nikhil Deepak Singh of Rs.30 lakhs and TDS has been deducted. In this regard assessee was asked to provide details of payment made to Nikhil Deepak Singh. However, assessee did not provide any details relating to payment made to Nikhil Deepak Singh amounting to Rs.30 lakhs. AO noticed that assessee is unable to prove the payment made to Nikhil Deepak Singh for business purpose. No any proof of services rendered was submitted to the AO. Accordingly the amount appearing in Form 26AS of Rs.30 lakhs was disallowed and added back to total income of assessee. There was similar observation in regard to payment of Rs. 10 lakhs made to Himani Rajasekar Naidu. Accordingly he disallowed Rs.40 lakhs u/s. 37 and added back to total income of assessee.
First Appellate Authority (FAA) dismissed the appeal. Being aggrieved, the present appeal is filed.
