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2018 (2) TMI 1885 - AT - Income TaxAddition on account of bonus paid to one of its Director - addition u/s 36(1 )(ii) - AO noted that no dividend was distributed among the shareholders, which included directors of the company - HELD THAT:- We note that in assessment year 2007-08, no evidences were filed by the assessee in respect of the services rendered by the directors. In the year under consideration also no such evidences have been filed before the lower authorities or before us. Thus, respectfully following the finding of the Tribunal (supra) we restore this issue to the file of the Assessing Officer for deciding afresh with the directions identical to what has been given by the Tribunal(supra). Accordingly, the Ground No. 1 of the appeal is allowed for statistical purposes. Addition on account of out of pocket expenses incurred by the assessee - HELD THAT:- AO has made the disallowance mainly on the issue that the assessee failed to discharge its onus that expenses were incurred wholly and exclusively for the purpose of business. Since, the assessee has not furnished any evidence to support the claim that expenses were incurred wholly and exclusively for the purpose of business, we feel it appropriate to restore the issue to the file of the AO for deciding afresh after providing adequate opportunity of being heard to the assessee. The assessee may produce all the documents to substantiate its claims to satisfy the conditions under section 37. Accordingly, the ground of the appeal of the Revenue is allowed for statistical purposes.
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