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2012 (9) TMI 695 - AT - Income TaxDisallowance of remuneration paid to the Director - Held that:- The director deemed to be receiving the remuneration here has done nothing substantive for the appellant so as to make it entitle for the remuneration to the extent of Rs.4.80 lacs as the total income shown by the assessee company is ‘nil’ in its return of income. The remuneration paid to director concerned is excessive and unreasonable but does not commensurate to the benefits derived by the appellant therefrom. As the disallowance of Rs.3,60,000/- made by the A.O. and confirmed by Ld. CIT(A) is excessive the disallowance to the extent of Rs.2 lacs is justified to meet the ends of justice - partly in favour of assessee. Disallowance of expenses incurred on electricity, telephone and salary - Held that:- The A.O. disallowed the expenses incurred on Krishna Kunj, Shahibaug of Rs.33,157/- on the ground that it is a residential property not being used for the purpose of business and the CIT(A) has confirmed this disallowance at Rs.17,000/- on account of expenses incurred for non business purposes, no infirmity in the order of Ld. CIT(A) as 50% of the expenses were incurred on electricity of Krishna Kunj - against assessee. Disallowance of traveling & entertainment expense - Held that:- As no justification to travel to Delhi has not been established before the A.O. that the same was for business purpose & likewise entertainment expenses was incurred by Mrs. Neena Parekh on self made vouchers for entertaining the guests in restaurants but before the A.O., the assessee could not establish business connection of these expenses no infirmity in the order of Ld. CIT(A) in disallowing the expenses - against assessee. Disallowance of set off of brought forward business losses and security transaction tax (STT) - Held that:- As on verification of CIT(A)’s order, both these grounds have not been found place in the appellate order and the same were left unadjudicated. Sr. DR has fairly conceded that these two grounds of appeal had been lapsed by Ld. CIT(A) unadjudicated. Therefore, Ld. CIT(A) is directed to consider both these grounds and give specific finding as per law - in favour of assessee for statistical purposes.
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