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2021 (8) TMI 789 - AT - Income TaxDisallowance of payment of professional fee to the directors - allegation of paying excessive remuneration to the directors - services provided by the directors towards professional physical fitness programme of Crossfit Inc., a global brand for fitness services - HELD THAT:- The documents on record clearly indicate that the assessee was to provide fitness services at Khar Gymkhana, the payments were made to the directors in accordance with the Board Resolution for professional services rendered at Khar Gymkhana. The assessee has filed sufficient evidence in the form of educational/professional qualification certificates of the directors to show that the directors were professionally qualified to provide the services. Assessee has pointed that in the subsequent assessment year the professional fee paid to the directors has been allowed by the Assessing Officer in scrutiny assessment proceedings on same set of documents. It is not the case of Revenue that the professional fees paid to the directors is in excess of the market rate. I find merit in the contentions raised by the assessee. The disallowance of payment of professional fee to the directors is unjustified, hence, the same is directed to be deleted. It would be relevant to mention here that both the directors in their respective return of income has offered professional fee received from the assessee to tax. Consequently, ground No.1 of the appeal is allowed. Disallowance of donation - AO made disallowance as no documentary evidence was filed by the assessee in the form of receipt, etc. to substantiate the donation made - HELD THAT:- Even before the Tribunal no evidence is produced by the assessee. In the absence of any evidence ground No.2 of the appeal is dismissed.
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