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| The Tax Publishers2020 TaxPub(DT) 4732 (Mum-Trib) INCOME TAX ACT, 1961
Section 37(1)
Where in order to substantiate genuineness of job work charges paid by assessee to its sister concern, except for single journal entry, no material was furnished by the assessee, disallowance made by AO of the same could not be held invalid.
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Business expenditure - Allowability - Job work charges -
AO made disallowance in respect of job work charges paid by assessee to its sister concern. Held: Since the assessee itself was self-equipped for testing of the meters, there was no reason for assigning job work of testing meters to sister concern. Further, except for single journal entry no material was furnished by the assessee before AO to substantiate genuineness of the expenditure. Hence, disallowance made by AO could not be objected to.
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2015-2016
INCOME TAX ACT, 1961
Section 36(1)(iii)
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