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2020 (11) TMI 944 - AT - Income TaxDisallowance of godown rent - assessee has neither filed copy of rent agreement in support of tenancy nor filed a confirmation in support of the claim - CIT(A) noted that the confirmation has been filed without the details of PAN No., complete address and identity of the person, thus confirmed addition - HELD THAT:- The entire claim of payment of rent cannot be denied when the assessee is utilizing godown for his business purposes. Though the godown has been owned by the father of the assessee however the liability to pay rent cannot be denied merely because of relationship between the tenant and the landlord being son and father. Thus without conducting any enquiry either by the AO or by the CIT(A) through remand report, the disallowance of the entire claim of godown rent is not justified. Once the assessee has produced the confirmation of the godown rent payment, the same cannot be rejected without conducting a proper enquiry. Hence, in the facts and circumstance of the case, this issue is remanded to the record of the AO to conduct a further enquiry and verify the claim by examining the recipient of the claim. Disallowance of bonus to staff - assessee has failed to establish the claim when neither the bonus register nor the bills and vouchers were produced by the assessee - CIT(A) has granted part relief and restricted and allowed the claim of the expenditure partly - HELD THAT:- CIT(A) has accepted the fact that the department has accepted the claim of bonus paid to the staff in the earlier year. Once the bonus paid to the staff in the earlier year is accepted then the claim for the year under consideration cannot be restricted based on the criteria of the amount paid in the earlier year. Therefore, the restriction of the claim by the CIT(A) is not based on a proper criteria or some reasonable basis. Accordingly, the disallowance of ₹ 30,326/- is set aside and the claim of the assessee is allowed.
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