LAXMI ENGINEERING INDUSTRIES Vs. INCOME-TAX OFFICER

JUDGEMENT

(1.) THESE three appeals seek to challenge the order of the learned Income -tax Appellate Tribunal, dated July 14, 2003, deciding three appeals numbers 300 to 303 (JP) 2002.

(2.) ALL these appeals were admitted on November 18, 2003, by framing the following substantial questions of law:

(3.) THE learned Assessing Officer had disallowed the commission, inter alia, finding that the company is a sister concern of the assessee -firm, and that no contract is shown to have been entered into between the assessee -firm and the company, that the assessee has simply resorted to device to reduce its income, and the payment is a bogus one. The other ground given is, that an opportunity being given the assessee failed to produce any evidence regarding the details of the work done of the company, what was value of the goods, and service, given by the company, what was the market value of the goods, and services, given by the company, and whether such goods and services, provided by the company, resulted in any profit to the assessee. Then the provisions of Section 40A(2)(a) have also been considered, and the amount was disallowed as bogus payment.