TMI Blog2017 (9) TMI 1577X X X X Extracts X X X X X X X X Extracts X X X X ..... er should go back to the Assessing Officer. In the computation of income, statutory liability has been allowed of ₹ 9,66,271/- whereas in the balance sheet at page No.19, the statutory liability is appearing as ₹ 10,90,192/-. CIT(A) has also confirmed the addition of ₹ 10,90,192/-. The assessee has shown to have disallowed the statutory liabilities of ₹ 9,66,271/- in the computation of income, but no evidence, like copy of ITR-4, is produced before us in respect of this fact. Therefore, the matter is restored to the file of AO to decide the issue afresh after proper verification. The assessee shall be given reasonable opportunity of being heard. Disallowance on account of salary - Held that:- Assessee failed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng addition of ₹ 16,43,471/- out of sundry creditors by applying provisions of section 43B. 3. Because ld. Commissioner of Income Tax (Appeals)-VI, New Delhi has erred in nature of liabilities unpaid covered u/s. 43B. 2 4. Because ld. Commissioner of Income Tax (Appeals)-VI, New Delhi has failed to appreciate that copy of audit report has been filed before him, which clearly suggested that no default was there u/s. 43B. 5. Because ld. Commissioner of Income Tax (Appeals)-VI, New Delhi has erred in confirming disallowance out of salary of ₹ 12,54,766.00. 6. Because on facts and in circumstances of the case, the assessment order as well as observations of Ld. AO are not correct and in fact, legally as well a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total Taxable Income 2,92,38,190/- 3. Aggrieved by these additions, the assessee preferred appeal before the first appellate authority. The assessee submitted detailed written submissions along with additional evidence u/r 46A(1). Additional evidences were sent to the Assessing Officer and called for remand report which was submitted by the AO. The ld. CIT(A) after considering the written submissions, remand report and additional evidence, sustained the disallowance u/s. 43B as under : Sl. No. Nature of Statutory Liabilities/taxes etc. Amount as on 31.03.2008 1. Statutor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory Liabilities of ₹ 10.90.192/- u/s 43B is also erroneous as this disallowance has already been made in return of income to the extent not paid before due date amounting to ₹ 9.66.271/-. 6. In any case, even though not admitted in case the disallowance has to be made in view of absence of evidence then also only disallowance of the difference of statutory liability appearing in balance sheet and return of income which comes to ₹ 1,24,441/- can be made. Otherwise the disallowance would lead to double disallowance and consequently double taxation, which is not the spirit of law. SALARY OF ₹ 12,54,766/- 7. That the Id.CIT(A) has erred in confirming the disallowance of Salary of ₹ 12,54,76 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the employee, future prospects of extension of the business and a host of other related circumstances. It is erroneous to think that increased remuneration can only be justified if there is corresponding increase in profits of the employer. Reliance is placed upon CIT v. Walchand Co. Pvt Ltd. (1967) 65 ITR 381 (SC)] and J K Wollens Manufacturer v. CIT (1969) 72 ITR 612 (SC). 10. That the allegation of the department that assessee has not provided any evidence to support its claim is half hearted as it is a matter of fact which was also before the AO and ld.CIT[A) and also open to verification that the office of the appellant company was sealed by MCD (Municipal Corporation of Delhi) due to which all the records and documents of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omputation of income, statutory liability has been allowed of ₹ 9,66,271/- whereas in the balance sheet at page No.19, the statutory liability is appearing as ₹ 10,90,192/-. The ld. CIT(A) has also confirmed the addition of ₹ 10,90,192/-.The assessee has shown to have disallowed the statutory liabilities of ₹ 9,66,271/- in the computation of income, but no evidence, like copy of ITR-4, is produced before us in respect of this fact. Therefore, the matter is restored to the file of AO to decide the issue afresh after proper verification. The assessee shall be given reasonable opportunity of being heard. 7 7. Regarding the disallowance on account of salary of ₹ 12,54,766/-, we find that the assessee failed to p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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