Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (10) TMI 1514 - AT - Income TaxDisallowance being 75% of commission expenditure - HELD THAT:- The assessee has neither substantiated the services rendered by the recipient of the commission nor furnished the addresses of the recipient of commission parties as a result the genuineness of the commission payment could not be established. Under the circumstances, we consider that the ld. CIT(A) has reasonably restricted the disallowance to 75% of the aforesaid expenditure claimed to be made to 774 parties, therefore, we do not find any infirmity in the decision of ld. CIT(A). Regarding claim of payment of commission to Smt. Padmaben M. Vora who was the mother in law of the assessee, it is observed that in spite of giving a number of opportunities by the assessing officer and ld. CIT(A), the assessee has failed to demonstrate the services rendered by her mother in law against which such huge commission was paid by the assessee. Even the assessing officer has examined Smt. Padmaben M. Vora mother in law of the assessee and recorded her statement u/s. 131(1) of the act and found that Smt. Padmaben M. Vora was not having any experience in stock broking business and she could not substantiate that what were services she had rendered to the assessee on the basis of which the assessee has paid commission to her. Considering the facts and circumstances, we do not find any error in the decision of ld. CIT(A) by holding that the recipient of the commission could not establish rendering of services to the assessee. Therefore, this ground of appeal of the assessee is also dismissed. Disallowance of salary expenses as outstanding during the year under consideration - HELD THAT:- We observe that neither the assessee has fully substantiated the claim of outstanding salary expenses with relevant evidences nor the assessing officer has fully disproved the claim of the assessee that she has not deployed any employee during the year under consideration. Considering the above facts, we are of the view that it will be reasonable to restrict the disallowance to the extent of 50% of the outstanding salary to the amount of Rs. 4 lacs. Accordingly, this ground of appeal of the assessee is partly allowed. Short term capital gain as business income - HELD THAT:- We observe that ld. CIT(A) has partly allowed the appeal of the assessee as per the alternative contention made by the assessee that share held for less than 30 days be treated as business income, therefore, we do not find any infirmity in the decision of ld. CIT(A). Accordingly, this ground of appeal of the assessee is rejected.
|