ITO, Ward-2(1)(3), Ahmedabad V. Hemato Oncology Clinic (Ahmedabad)P.Ltd., Ahmedabad

ITA 3411/AHD/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8444 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 08-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S N DIVETIA
• Keywords: Opportunity of being heard; Maximum Marginal Rate; Question of law; Fair market value

Judgement Text

ITA NO. 3411/AHD/2015 ITO VS. HEMATO ONCOLOGY CLINIC ASSESSMENT YEAR: 2012-13 PAGE 1 OF 6 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND MAHAVIR PRASAD JM] ITA NO. 3411/AHD/2015 ASSESSMENT YEAR: 2012-13 INCOME TAX OFFICER ..................APPELL ANT WARD 2(1)(3), AHMEDABAD VS. HEMATO ONCOLOGY CLINIC (AHMEDABAD) PVT LTD ...........................RESPONDENT VDANTA, NR. SAMVED HOSPITAL, COMMERCE COLLEGE ROAD, NAVRANGPURA, AHMEDABAD [PAN : AABCH 4932 Q] APPEARANCES BY: MUDIT NAGPAL FOR THE APPELLANT SN DIVETIA FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 25.01.2018 DATE OF PRONOUNCING THE ORDER : 24.04.2018 O R D E R PER PRAMOD KUMAR, AM: 1. THIS APPEAL IS DIRECTED AGAINST LEARNED CIT(A)S ORDER DATED 8 TH SEPTEMBER 2015 FOR THE ASSESSMENT YEAR 2012-13. 2. GRIEVANCE OF THE APPELLANT IS THAT LEARNED CIT( A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWANCE OF RS.52,57,032/ - MADE UNDER SECTION 40A(2)(B) OF THE ACT, WITHOUT PROPERLY APPRECIATING THE FACTS OF THE CASE AND MATERIAL ON RECORD. 3. THE ISSUE IN APPEAL LIES IN A NARROW COMPASS OF MATERIAL FACTS. THE ASSESSEE BEFORE US IS A CLOSELY HELD COMPANY ENGAGED IN RUNN ING A CLINIC PROVIDING TREATMENT TO HEMATO ONCOLOGY PATIENTS. DURING THE COURSE OF SCRUTINY ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTICED THAT, OU T OF THE TOTAL PROFESSIONAL RECEIPTS OF RS.5,93,44,045/-, THE ASSESSEE COMPANY HAS PAID RS.3,50,46,881/- TO FOUR DOCTORS NAMELY DR. BHAVIN SHAH, DR. CHIRAG DESAI, DR. SANDIP SHAH AND DR. SHAILESH TALATI, WHO ARE PROMOTER DIRECTORS OF THIS COMPANY, WHEREAS ONLY RS.64,09,696/- PAYMENTS COVER THE PAYMENTS TO SEVEN OTHER DOCTORS. EVEN THOUGH IT WAS EXPLAINED TO HIM THAT THESE FOUR DOCTORS ARE HI GHLY REPUTED SPECIALISTS, THE ASSESSING OFFICER WAS OF THE VIEW THAT 84% OF SALAR IES BEING PAID TO FOUR DOCTORS, AND 16% SALARIES BEING PAID TO THE REMAINING SEVEN DOCTORS, BY ITSELF, SHOWS THAT THE PAYMENT TO THE FOUR DOCTORS, WHO ARE PROMOTER DIREC TORS AS WELL AND, AS SUCH, ITA NO. 3411/AHD/2015 ITO VS. HEMATO ONCOLOGY CLINIC ASSESSMENT YEAR: 2012-13 PAGE 2 OF 6 COVERED BY THE DEFINITION OF SPECIFIED PERSONS, S HOWS THAT THE PAYMENT IS EXCESSIVE AND UNREASONABLE. HE THUS DISALLOWED 15% OF PAYMEN TS MADE TO THESE FOUR DOCTORS, UNDER SECTION 40A(2). THE DISALLOWANCE WA S THUS QUANTIFIED AT RS.52,57,032/-. AGGRIEVED, ASSESSEE CARRIED THE MA TTER IN APPEAL BEFORE THE CIT(A) WHO DELETED THE AFORESAID DISALLOWANCE BY OBSERVING AS FOLLOWS:- 3.10. HAVING CONSIDERED THE FACTS AND SUBMISSION, IT IS APPARENT THAT IT IS UNDISPUTED FACT THAT THE SERVICES OF PROFESSIONAL D OCTOR IS NOT COMPARABLE WITH ANY OTHER DOCTOR OF A SIMILAR LINE BECAUSE OF VARIO US FACTORS INCLUDING THE SKILLS, COMPETENCY, EXPERIENCE AND ITS POPULARITY. THEREFORE, THE COMPARISON OF ANY PAYMENT TO A DOCTOR WHO IS PROMOTER HAVING V AST EXPERIENCE OF A LONG DURATION CANNOT BE COMPARED WITH A JUNIOR DOCTOR EM PLOYED IN THE COMPANY. IN THE APPELLANT'S CASE, THE AO HAS MADE THE COMPAR ISON OF THE FOUR PROMOTER DOCTORS WITH THE PROFESSIONAL FEE OF THE EMPLOYEE D OCTORS WHO ARE NOT AT PAR. THE AO HAS NOT MAKE OUT THE CASE THAT IN WHAT MANNE R THE PROVISIONS OF SECTION 40A(2) (B) ARE APPLICABLE ON THE FACTS OF T HE CASE. IN THE INSTANT CASE, IT IS FOUND THAT THE AVERAGE INCREASE IN THE PROFES SIONAL FEE OF THE PROMOTER DIRECTORS WAS 42% AS COMPARED TO PRECEDING YEAR. BU T AT THE SAME TIME, THERE WAS ALSO SUBSTANTIAL INCREASE OF 56% AND 64% IN THE PROFESSIONAL FEE WITH REGARD TO THE DOCTORS OTHER THAN DIRECTORS NAM ELY; DR. ABHISHEK KAKRU AND DR. DEEPABEN RESPECTIVELY. EVEN, HERE THE INCRE ASE OF PROFESSIONAL FEE IN THE CASE OF DOCTORS OTHER THAN PROMOTER DIRECTORS A S MENTIONED ABOVE WAS MUCH HIGHER THAN THE AVERAGE INCREASE OF THE PROFES SIONAL FEES OF THE PROMOTER DIRECTORS. SO, THE COMPARISON OF SCALE AS ADOPTED BY THE AO IN RESPECT OF DOCTORS IS NOT CORRECT AND JUSTIFIED. 3.11. FURTHER, THE APPELLANT HAS GIVEN THE COMPARAT IVE STUDY OF THE PROFESSIONAL FEE SHARING FROM THE DIRECT INCOME IN THE CASE OF APPELLANT WHICH WAS 55.64%, WHILE IN A SIMILAR NATURE OF APPELLANT NAMELY; AASTHA ONCOLOGY PVT. LTD., THIS RATIO WAS 78.08% IN THE YEAR UNDER CONSIDERATION IN SPITE OF THE FACT THAT THE APPELLANT COMPANY WAS OLDER BY MORE T HAN 3 YEARS. THUS, BY NO PARAMETER THE PAYMENT OF PROFESSIONAL FEE TO THE PR OMOTER DIRECTORS WAS UNREASONABLE AND EXCESSIVE, HAVING REGARD TO THE FA IR MARKET VALUE OF THE SERVICES FOR WHICH PAYMENT WAS MADE. 3.12. IT HAS ALSO BEEN SEEN THAT PROMOTER DIRECTORS HAVE INCLUDED THE PROFESSIONAL FEE IN THEIR RETURNS OF INCOME AND PAI D THE TAX AT THE MAXIMUM MARGINAL RATE THEREUPON. THUS, THERE IS NO PLANNING OF ANY TAX EVASION BY MAKING ANY EXCESS PAYMENT TO THE PROMOTER DIRECTORS AS HAS BEEN HELD BY THE AO. 3.13. THE TAXES ON SUCH PROFESSIONAL RECEIPTS WERE PAID BY THE PROMOTER AT THE MAXIMUM MARGINAL RATE AS WAS APPLICABLE IN THE CASE OF APPELLANT AND THIS WAS A REVENUE NEUTRAL EXERCISE. THEREFORE, NO ADVERSE VIEW IS REQUIRED TO BE TAKEN IN VIEW OF THE JUDGMENT OF HON'BLE SUPREME COURT IN THE CASE OF CIT, DELHI VS. GLAXMO SMITHKLINE PVT. LTD. (SUPRA). JUDG MENT OF HON'BLE BOMBAY HIGH COURT IN THE CASE OF INDO SAUDI SERVICES (TRAV EL) (P) LTD. (2009) 310 IT 306 ALSO SUPPORTS THIS VIEW. FURTHER, CIRCULAR NO. 6-P DATED 6/7/1968 ALSO SUPPORTS THE APPELLANT'S PLEA FOR NO DISALLOWANCE U NDER THE PROVISIONS. IT HAS ITA NO. 3411/AHD/2015 ITO VS. HEMATO ONCOLOGY CLINIC ASSESSMENT YEAR: 2012-13 PAGE 3 OF 6 ALSO BEEN NOTICED THAT IN THE PRECEDING YEARS EVEN THE PROFESSIONAL FEE PAID TO PROMOTER DIRECTORS VIS-A-VIS PROFESSIONAL FEE TO OTHER DOCTORS HAVE BEEN COMPARED AND IT IS FOUND THAT IN A. Y. 2009-10, THE TOTAL FEE PAID TO PROMOTER DIRECTORS WAS 7.21 TIMES OF THE PROFESSIONAL FEE TO OTHER DOCTORS, WHILE IN A. Y. 2010-11 IT WAS 4.10 TIMES, IN A. Y. 2011-12 IT WAS 3.35 TIMES AND IN THE YEAR UNDER CONSIDERATION IF WAS 5.22 TIMES. THUS, IT CAN BE SEEN THAT EVEN IN A. Y. 2009-10, THE RATIO OF PROFESSIONAL FEE TO PROMOTER DIRECTORS VIS-A-VIS THE OTHER DIRECTORS WAS HIGHER AS COMPARED TO THE YEAR UNDER CONSIDERATION, EVEN THOUGH NO ADVERSE VIEW HAS BEEN TAKEN BY THE AO IN THAT YEAR. THUS FROM THE ABOVE, IT IS OBVIOUS THAT THE PROFESSIONAL FEES PAY MENT TO PROMOTER DOCTORS IN THE YEAR UNDER CONSIDERATION WAS ALMOST ON SIMILAR LINES AND NO EXCESS PAYMENTS TO THEM WERE MADE. 3.14. IN VIEW OF THE AFORESAID DISCUSSION, THE DISA LLOWANCE MADE BY THE AO INVOKING THE PROVISIONS OF SECTION 40A(2)(B) IS FOU ND NOT CORRECT AND JUSTIFIED AND THE SAME IS DELETED. THIS VIEW FINDS SUPPORT FR OM THE JUDGMENTS AS REPRODUCED BELOW:- DCIT VS. JAGGA PRINTS PVT. LTD. [ITA NO. 985/AH D/2011 DT. 19/6/2015] THE ID. ASSESSING OFFICER HAS NOT BROUGHT ANY EVIDE NCE WITH REGARD TO THE COMPARABILITY OF THE SERVICES RENDERED BY THESE PER SONS VIS-AVIS AVAILABILITY IN THE OPEN MARKET. THE ASSESSING OFFICER HAS SIMPL Y COMPARED THE PAYMENTS WITH THE PAYMENTS MADE BY THE ASSESSEE IN EARLIER YEARS. THE REQUIREMENT OF THE SECTION IS THAT SUCH PAYMENT IS TO BE COMPARED WITH THE FAIR MARKET VALUE OF THE SERVICES OR WHETHER THESE SERVICES CAN BE AVAILED AT A LOWER RATE FROM THE PERSONS WHO ARE NOT COVERE D BY SUB-CLAUSE 'B'. NO SUCH EVIDENCE HAS BEEN BROUGHT ON RECORD; THEREFORE . ID. COMMISSIONER OF INCOME TAX [APPEALS) HAS RIGHTLY DELETED THE DISALL OWANCE. CIT VS. SARJAN REALITIES LTD. (2014) [50 TAXMAN .COM 52] (GUJ) TAKTAWALA GLASS INDIA P. LTD. VS. ACIT [TAX APPE AL NO. 1058 OF 2006 DATED 26/11/2014] IT IS HELD THAT THE ONUS IS ON THE AO TO PROVE THAT THE PAYMENT MADE BY THE ASSESSEE TO THE SPECIFIED PERSONS WAS UNREASONABLE OR EXCESSIVE DCIT VS. M/S. MGS HOS HOSPITALITIES, DELHI BENC H OF ITAT IT HAS BEEN HELD THAT IN ABSENCE OF ANY INQUIRY ABO UT FAIR MARKET VALUE OF SERVICES RENDERED BY SHRI ANIL GUPTA AND COMPARABLE CASE, THE DISALLOWANCE U/S. 40A(2)(B) WAS NOT JUSTIFIED. CIT VS. SIYA RAM GARG, HUF [237 CTR 321) [PH] IT IS HELD THAT IN VIEW OF THE SISTER CONCERNS WERE BEING TAXED AT THE SAME RATE, THERE WAS NO REASON FOR THE ASSESSEE TO SHOW HIGHER RATE FOR PURCHASES MADE BY IT FROM THEM. ITA NO. 3411/AHD/2015 ITO VS. HEMATO ONCOLOGY CLINIC ASSESSMENT YEAR: 2012-13 PAGE 4 OF 6 DCIT VS. MEET HEAT ENGINEERS [ITA NO. 3654/07 D T. 23/07/2010] ITO VS. CELLO PAPER CO. [ITA NO. 1815/AHD/2010 DT.28/12/2012] BATIVALA AND KARANI VS. ACIT [2 SOT 379 (MUM)] 3.15. THE RELATED GROUNDS OF APPEAL ARE ACCORDINGLY ALLOWED . 4. AGGRIEVED BY THE RELIEF SO GRANTED BY THE CIT(A) , THE ASSESSING OFFICER IS IN APPEAL BEFORE US. 5. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF THE AP PLICABLE LEGAL POSITION. 6. WE HAVE NOTED THAT THERE IS NO FINDING BY THE AS SESSING OFFICER ABOUT AS TO WHAT CONSTITUTES FAIR MARKET PRICE OF THE SERVICES RENDERED BY THE PROMOTER DIRECTORS AND THAT HE HAS SIMPLY PROCEEDED TO MAKE AN ADHOC D ISALLOWANCE @ 15% OUT OF THE PAYMENTS MADE TO THESE PERSONS. AS TO THE QUESTION WHETHER SUCH A DISALLOWANCE IS PERMISSIBLE, WE FIND GUIDANCE FROM THE JUDGMENT OF HONBLE JURISDICTIONAL HIGH COURT, IN THE CASE OF CIT VS. ASHOK J. PATEL [(2013 ) 43 TAXMANN.COM 227 (GUJ.)], WHEREIN CONFIRMING THE VIEWS ARTICULATED BY THE TRI BUNAL THROUGH ONE OF US (I.E. ACCOUNTANT MEMBER) IN THE CASE OF ACIT VS. ASHOK J PATEL (59 SOT 53), THEIR LORDSHIPS HAVE, INTER ALIA, OBSERVED AS FOLLOWS:- THE LEARNED CIT(A) ALSO OBSERVED THAT NO COMPARATI VE PRICES FOR SIMILAR TRANSPORT SERVICES WAS CITED BY THE AO AND THEREFOR E, WAS NOT JUSTIFIED IN MAKING AD-HOC DISALLOWANCE OF 5% UNDER SECTION 40A(2)(B) O F THE ACT AND THEREFORE, THE CIT(A) AS SUCH RIGHTLY DELETED THE DISALLOWANCES MA DE UNDER SECTION 40A(2)(B) OF THE ACT. CONSIDERING THE PROVISIONS OF SECTION 4 0A(2)(B) OF THE ACT AND THE EVIDENCE ACT, IF THE AO WAS OF THE OPINION THAT THE PAYMENT FOR WHICH DISALLOWANCE IS CLAIMED, IS EXCESSIVE OR UNREASONAB LE. IN THAT CASE, IT WAS FOR THE AO TO ASSESS FAIR MARKET PRICE AND GIVE COMPARA TIVE INSTANCES FOR PAYMENT FOR SIMILAR TRANSPORT SERVICE. IN ABSENCE OF SUCH C OMPARATIVE CASES BROUGHT ON RECORD, AS RIGHTLY OBSERVED BY THE ITAT IT WAS NOT OPEN FOR THE AO TO MAKE DISALLOWANCE UNDER SECTION 40A(2)(B) OF THE ACT. WH ILE DELETING DISALLOWANCE MADE BY THE AO UNDER SECTION 40A(2)(B) OF THE ACT, THE LEARNED ITAT HAS OBSERVED AND HELD IN PARA 7 AS UNDER : '7. IT IS PLAIN ON PRINCIPLE THAT, SO FAR AS DISALL OWANCE UNDER SECTION 40A(2) FOR PAYMENT BEING EXCESSIVE OR UNREASONABLE CAN ONL Y BE MADE WHEN THE PAYMENT IS MADE TO THE 'SPECIFIED PERSONS' UNDER CL AUSE 40A(2)(B) AND 'THE ASSESSING OFFICER IS OF THE OPINION THAT SUCH EXPEN DITURE IS EXCESSIVE OR UNREASONABLE HAVING REGARD TO THE FAIR MARKET PRICE OF THE GOODS, SERVICES OR FACILITIES FOR WHICH THE PAYMENT IS MADE'. THE O PINION OF THE ASSESSING OFFICER FOR THE EXPENDITURE BEING EXCESSIVE OR UNRE ASONABLE IS TO BE FORMED VIS-A-VIS FAIR MARKET PRICE OF SUCH GOODS SERVICES OR FACILITIES. IT IS THUS SINE QUA NON FOR MAKING A DISALLOWANCE UNDER SECTION 40( A)(2) THAT THE ASSESSING OFFICER HAS TO ASCERTAIN THE FAIR MARKET PRICE OF SUCH GOODS, SERVICES OR FACILITIES, AND THEN MAKE A 'DISALLOWAN CE FOR THE AMOUNT WHICH IS IN EXCESS OF FAIR MARKET VALUE OF SUCH GOODS, SERVI CES OR FACILITIES. UNLESS THERE IS A CATEGORICAL FINDING ABOUT THE 'FAIR MARK ET VALUE' AND THE ASSESSEE HAS AN OPPORTUNITY TO BE HEARD ON ASSESSING OFFICER 'S FINDING ABOUT SUCH ITA NO. 3411/AHD/2015 ITO VS. HEMATO ONCOLOGY CLINIC ASSESSMENT YEAR: 2012-13 PAGE 5 OF 6 'FAIR MARKET VALUE', THERE CANNOT BE AN OCCASION TO MAKE A DISALLOWANCE UNDER SECTION 40A(2). THE VERY SCHEME OF SECTION 40 A(2) DOES NOT ENVISAGE AN ADHOC DISALLOWANCE AS HAS BEEN MADE IN THE PRESENT CASE. FOR THIS SHORT REASON ALONE, THE IMPUGNED DELETION OF D ISALLOWANCE MUST STAND CONFIRMED. THERE IS, HOWEVER, ONE MORE REASON FOR D OING SO. AS EVIDENT FROM A PLAIN READING OF THE ASSESSMENT ORDER, THE A SSESSING OFFICER, HAD CALLED UPON THE ASSESSEE TO DEMONSTRATE THAT THE PA YMENT MADE BY THE ASSESSEE TO THE SPECIFIED PERSONS IS NOT UNREASONAB LE OR EXCESSIVE, AND IT IS THUS FAILURE OF THE ASSESSEE WHICH HAS RESULTED IN DISALLOWANCE UNDER SECTION 40A(2). HOWEVER, PROVING A NEGATIVE, AS THE ASSESSEE HAS BEEN CALLED UPON TO DO IN THIS CASE, IS AN IMPOSSIBLE ON US TO PERFORM. IN ANY EVENT, THIS ONUS IS ON THE ASSESSING OFFICER AND TH E AO HAS FAILED TO DISCHARGE THE SAID ONUS. FOR THIS REASON ALSO, THE DISALLOWANCE IS UNSUSTAINABLE IN LAW. AS REGARDS THE DISCREPANCY IN THE FIGURES OF THE TAX AUDIT REPORT AND THE ASSESSEE, NEITHER SUCH A SITUA TION CAN BE A REASON ENOUGH TO MAKE A DISALLOWANCE UNDER SECTION 40A(2) NOR THE ONUS OF EXPLAINING SUCH A VARIATION IS ON THE ASSESSEE. A T AX AUDITOR IS AN INDEPENDENT PROFESSIONAL AND ANY ERRORS IN HIS REPO RT CANNOT BE PUT TO ASSESSEE'S DISADVANTAGE. IN VIEW OF THESE DISCUSSIO NS, AS ALSO BEARING IN MIND ENTIRETY OF THE CASE, WE APPROVE THE CONCLUSIO NS ARRIVED AT BY THE CIT(A) AND DECLINE TO INTERFERE IN THE MATTER.' WE ARE IN COMPLETE AGREEMENT WITH THE VIEW TAKEN BY THE ITAT AND THE OBSERVATIONS MADE BY THE LEARNED ITAT WHILE DELETIN G DISALLOWANCES MADE BY THE AO UNDER SECTION 40A(2) (B) OF THE ACT ON MOTOR BUS RENT. NO ERROR HAS BEEN COMMITTED BY THE LEARNED ITAT WHICH CALLS FOR INTER FERENCE OF THIS COURT. NO QUESTION OF LAW MUCH LESS ANY SUBSTANTIAL QUESTION OF LAW ARISES. 7. THE ADHOC DISALLOWANCES UNDER SECTION 40A(2) ARE THUS SIMPLY NOT PERMISSIBLE. FOR THIS SHORT REASON ALONE, THE IMPUG NED RELIEF GRANTED BY THE CIT(A) MUST BE UPHELD. 8. EVEN ON MERITS OF THE MATTER, THE CASE OF THE RE VENUE MUST FAIL. THERE IS AN INHERENT FALLACY IN THE APPROACH OF THE ASSESSING O FFICER. THE FALLACY IS THIS. IN THE CASES OF SEASONED PROFESSIONALS WHETHER DOCTORS, LAWYERS, PAINTERS OR ACTORS, SUCH COMPARISONS, AS MADE BY THE ASSESSING OFFICER, ARE UNCALLED FOR. THEIR REMUNERATION MUST DEPEND ON THEIR MARKET WORTH, AND DETERMINATION OF SUCH MARKET WORTH IS UNINFLUENCED BY WHAT OTHER PROFESSIONALS I N THEIR AREA OF EXPERTISE EARN. THE ASSESSING OFFICER HAS, DESPITE THE ABOVE POSITION, CHALLENGED THE PAYMENTS MADE TO FOUR DOCTORS, WHO ARE ADMITTEDLY SEASONED AND REPUT ED PROFESSIONALS IN THEIR FIELDS, ON THE BASIS OF WHAT OTHER DOCTORS ARE BEING PAID I N THAT AREA OF EXPERTISE. THIS IS VERY SIMPLISTIC OR RATHER NAIVE APPROACH WHICH CANN OT MEET ANY JUDICIAL APPROVAL. LEARNED CIT(A) WAS INDEED JUSTIFIED IN REVERSING TH E STAND OF THE ASSESSING OFFICER. 9. ONE MUST ALSO BEAR IN MIND THE FACT THAT SIMPLY BECAUSE A PAYMENT IS HIGH, IT NEED NOT BE EXCESSIVE TOO, BUT THEN THE ASSESSING OFFICER HAS USED THE EXPRESSIONS HIGH AND EXCESSIVE RATHER INTERCHANGEABLY. THE EXPRESSION EXCESSIVE HAS TO BE CONSIDERED VIS-A-VIS FAIR MARKET VALUE OF SUCH SERV ICES, AS STATUTORY PROVISIONS CATEGORICALLY STATE WHEN SOMEONE MAKES A PAYMENT OF SAY RS. 50 LAKHS FOR AN APPEARANCE BY A VERY EMINENT LAWYER, IT MAY BE HIGH , BUT AS EXPERIENCE TELLS US, ITA NO. 3411/AHD/2015 ITO VS. HEMATO ONCOLOGY CLINIC ASSESSMENT YEAR: 2012-13 PAGE 6 OF 6 WHEN SOMEONE CAN ACTUALLY AFFORD IT, IT IS NOT REAL LY EXCESSIVE. THE MERE FACT THAT THERE ARE EQUALLY EXPERIENCED, EVEN IF NOT EQUALLY SUCCESSFUL LAWYER, ARE AVAILABLE FOR MUCH LOWER FEES, WOULD NOT IMPLY THAT THE PAYMENT T O THE VERY EMINENT COUNSEL IS EXCESSIVE. 10. IN VIEW OF THE ABOVE DISCUSSIONS, AS ALSO BEARI NG IN MIND ENTIRETY OF THE CASE, WE UPHOLD THE RELIEF GRANTED BY THE CIT(A) AND DECL INE TO INTERFERE IN THE MATTER. 11. IN THE RESULT, THE APPEAL IS DISMISSED. PRONOU NCED IN THE OPEN COURT TODAY ON THE 24 TH APRIL, 2018 SD/- SD/- MAHAVIR PRASAD PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 24 TH DAY OF APRIL, 2018 **BT COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION: .....ORDER PREPARED AS PER 7 PAGES MANUSCRIPTS OF HONBLE AM WHICH ARE ATTACHED...24.04.2018... 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: .......24.04.2018.......... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: 24.04.2018... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: .. 24.04.2018. 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : ... 24.04.2018... 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : 24.04.2018. 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER : 8. DATE OF DESPATCH OF THE ORDER: ......