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2023 (8) TMI 761 - ITAT SURATDisallowance of salary expenses - allowable business expenses or not? - AO considering the volume of business activities of providing credit facility, the staff is sufficient and disallowed the salary of employee engaged for collection charges - assessee submits that the expenses was incurred for the employee engaged for daily collection and expenses were incurred wholly and exclusively for the purpose of its business - HELD THAT:- As the assessee is the best person to assess its requirement for smooth functioning of its affairs. The existence of person to whom such salary was paid is not doubted by the assessing officer, rather held that there is sufficient staff with the assessee. The action of AO was not justified to assess the justification of number of employees or their expenses, therefore, direct AO to allow the salary expenses to the assessee. Decided in favour of assessee.
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