S. Ravindra Bhat, J.

CM No. 41578 of 2016

1. For the reasons stated in the application, the delay of 11 days in re-filing the appeal is condoned. The appeal is taken on record.

2. The application stands disposed off.

ITA 795/2016

3. The question of law which arises for consideration is as follows:-

“Did the ITAT fall into error in restoring the disallowance of 50% of Rs.48 lakhs paid to the appellant/assessee employee for the relevant assessment year validly under Section 40A(2)(b) of the Income Tax Act, 1961?"

4. The Assessing Officer (AO) had, for Assessment Year 2009-10, disallowed 50% of the payments made on account of professional remuneration to Mr. Preetpal Singh from the assessee’s claims. The AO had required details of the remuneration and the nature of services provided by Mr. Preetpal Singh. The AO felt that the assessee had not adequately addressed the concerns with respect to the time spent for its work, having regard to the qualifications and expertise of the said expert, and therefore, disallowed 50% of the claimed expenditure i.e. Rs.48 lakhs. The Commissioner of Income Tax (Appeals) [CIT(A)] after analysing Section 40A(2) of the Income Tax Act, 1961 (hereinafter