Krishna R. Bhat, Mumbai vs Assessee on 2 November, 2012
Krishna R. Bhat vs. Asst. CIT
3.8 Firstly, therefore, there is to begin with, no evidence of the work actually
performed, which is limited only to introduction, and which (evidence) we have
explained would stand to be generated in the normal course of business. They are all
persons who are either involved in unrelated trades and/or have even remotely no
connection with the assessee's trade or business or products. They are, therefore, most
unlikely to be contacted by the assessee for the purpose. They have only collected the
information which is not only readily available in the public domain, but also in the trade
circles, as each supplier endeavours to increase his visibility by advertising in the trade
journals, projection and participation in other forums, as well as through the net. They are
not aware of the products being dealt with by them, not to speak of the parties
themselves, or even of the assessee's requirements. In fact, most of them are also not
aware of even the rate at which the commission stands paid to them. Our examination of
the facts of the case (refer paras 3.1 to 3.7 of this order), including the modus operandi
adopted, which we have also found to be inconsistent with the business model being
followed, has led us to find that no brokering work could under the circumstances, which
is also not the claim, could be made, much less genuine referral work, which requires a
much more comprehensive data base, analysis and knowledge. The paper-book placed on
record, which has also been carefully perused, only bears the accounting information, and
qua which there is no dispute, though that by itself would be of no moment. The
assessee's case, to which no improvement could be made by it before us, is thus without
substance. The case law relied upon would be of little moment in view of the matter
being factual and having been decided on facts. Under the circumstances, therefore, we
have no hesitation in confirming the concurrent findings of the authorities below. We
decide accordingly.