Globus Realcom Pvt Ltd Vs DCIT (ITAT Delhi)
Assessing Officer was of the view that the assessee could not prove the genuineness of the parties and disallowed relevant expenses.
Appellant submitted that Confirmation of accounts from M/s Mathur Associates and The Transaction Point clearly show that in addition to commission, there is an element of Service Tax mentioned in the account and the allegation of the Assessing Officer that the amount confirmed by the parties differ from the amount claimed by the assessee does not hold any water in as much as the difference is because of the Service Tax.
Once TDS element is reflected in Form No. 26AS, the Assessing Officer cannot allege that the parties are not genuine. Moreover, full details are available on record. Therefore, we do not find any reason in sustaining the disallowance. Findings of the ld. CIT(A) are set aside and the Assessing Officer is directed to delete the impugned disallowance.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal by the assessee is preferred against the order of the CIT(A)-22, New Delhi dated 26.02.2019 pertaining to Assessment Year 2015-16.
2. The sum and substance of the grievance of the assessee is that the CIT(A) erred in sustaining a disallowance of Rs. 32,13,686/- made by the Assessing Officer while completing assessment u/s 143(3) of the Act.
3. Briefly stated, the facts of the case are that the assessee is engaged in the business of real estate. During the course of scrutiny assessment proceedings, the Assessing Officer noticed that the assessee has claimed large sales promotion expenses in its profit and loss account. Therefore, the assessee was asked to produce the details regarding large sales promotion expenses.
4. The assessee did not furnish complete details. Therefore, once again, the assessee was asked to produce entire details with regard to large sales promotion expenses. The assessee was also asked to give details party-wise that per party how many flats were booked and how much payment was made for booking flat with documentary evidences and to justify the claim of such large sales promotion expenses amounting to Rs. 1,03,94,138/-.
5. Specific details sought for related to the following parties:
