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2022 (6) TMI 788 - ITAT CHENNAIDisallowance of expenses - interest payment or salary payments - HELD THAT:- It is an undisputed fact that the assessee was a working partner in three firms viz., M/s. Ganesh Metal Industries, M/s. Muthalamman Metal Industries and M/s. Ramana Metals. In order to cope up with the firms' activities and as per allocation of work to the assessee-partner, such as, day-today banking operations, collections from parties in and around Chennai, staff management, production supervision, stock management & control and general office administration, etc., the assessee has engaged employees and made payments from her own remuneration. In fact, as per work allocation, the assessee-partner was permitted to hire personnel to assist her in clerical works by way of paying salary to them out of her share of partner salary received by her without any further delegation from the firm. On perusal of the details of employees engaged by the assessee and confirmation letters of having receipt of salary and also proved identity of the employees beyond doubt for the assessment year 2013-14, which is similar to the assessment year 2010-11 as has been submitted by the ld. Counsel for the assessee, we are of the considered opinion that the assessee should be allowed to claim the expenses incurred by her as the firms have already debited all expenses in their books of accounts in respect of the business activities. The assessee was not prohibited from making such claim of expenditure, which she has actually incurred and directly related to the income earned. Under the above facts and circumstances, the expenditure claimed by the assessee is allowed. Revision u/s 263 - AY 2013-14 - HELD THAT:- Similar claim of expenses for the assessment year 2010-11 has been accepted by the Tribunal, herein above, in lieu of furnishing confirmation from the employees and their identity for the assessment year 2013-14. Since the Tribunal has accepted similar claim of expenses for the assessment year 2010-11, the claim of expenses for the assessment year 2013-14 is also accepted and the revision order passed by the ld. PCIT for the assessment year 2013-14 is quashed.
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