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2021 (8) TMI 500 - AT - Income TaxDisallowance 50% of salary and bonus expenses - reliance on books of account lying seized with the department. HELD THAT:- From perusal of contents of assessment order dated 29.03.2016 passed under section 143(3) r.w.s. 145C/254, we find that the matter was restored back to the file of the A.O. with the direction to consider the books of account lying seized with the department, though the assessee was directed to provide documents and details when called by the A.O - as directed to provide the information within the fifteen days of receipt of order or fixing the date of hearing. A.O. nowhere recorded that he has considered the books of account lying seized with the department. A.O. observed that salary and bonus expenses are increased comparative to earlier assessment and disallowed 50% of salary and bonus expenses. A.O. has not rejected the books of accounts. There is not finding that salary and bonus expenses are bogus and not verifiable. CIT(A) conferred the order of A.O. by taking that no details were furnished. At the cost of repetition, we may note that ld. CIT(A) passed the order of ex parte without verification of facts and following the mandate of order of Tribunal. CIT(A) in A.Y. 2007-08 while deleting the addition find that no discrepancy in the books of account was pointed out while making disallowance of salary and bonus. Further, reasonableness of salary was not questioned. The ld. CIT(A) in subsequent year also observed that the A.O. has not appreciated Star TV has increased their rates many times because of broadcasting system from analogue system to digital system by Telecom Regulatory Authority of India (TRAI). Considering the details discussion and the relief granted by ld. CIT(A) in subsequent year, on identical facts, we find that the ground of appeal raised by Revenue is squarely covered in favour of assessee.
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