TMI Blog2020 (11) TMI 944X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - 14 relevant for A.Y. 2014-15. 2. That on the facts and in the circumstances of this case whether the Learned CIT(A) was legally justified in confirming addition of ₹ 180000/- in respect of godown rent paid as above when the same expense was duly debited in audited Trading and Profit Loss A/c and also the same amount was duly debited in P. L. A/c in A.Y. 2013-14 duly accepted by the department and copy of same was duly produced before Learned CIT(A). 3. That the Learned CIT(A) Findings regarding confirmation of addition of ₹ 180000/- p.a. in respect of godown rent is not proper as copy of godown rent with confirmatory letter from landlord Ganesh Gupta was filed in which name, parentage, address, amount of rent per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee to submit the copy of the ledger account along with the bills and vouchers in support of the claim. In response to that the assessee filed only copy of the ledger account of godown rent showing the monthly rent of ₹ 15,000/- total amounting to ₹ 1,80,000/-. The AO disallowed the claim of godown rent on the ground that the assessee has neither filed copy of rent agreement in support of tenancy nor filed a confirmation in support of the claim. 3. The assessee challenged the order of the AO before the CIT(A) and also filed a confirmation from the landlord regarding the receipt of godown rent. The CIT(A) noted that the confirmation has been filed without the details of PAN No., complete address and identity of the person. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O for want of any supporting evidence and particularly the rent agreement. From the confirmation of the rent received, it is noted that the rent was paid by the assessee to his father and, therefore, the identity of the father of the assessee cannot be disputed. Further when the father of the assessee is not an income tax assessee then the question of giving of details of PAN number does not arise. However, since it is a payment to the father of the assessee and transaction between the close relatives, therefore, the correctness of the claim of ₹ 1,80,000/- needs to be further verified. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. Before the Tribunal, the ld. AR of the assessee has submitted that the department has accepted the claim of bonus of ₹ 60,450/- in the earlier year and, therefore, the claim of bonus paid to the staff cannot doubted in the year under consideration. He has referred to the order of the CIT(A) and submitted that the CIT(A) has restricted the claim only to the amount of bonus which was paid in the preceding year which is not a proper basis of disallowance in the claim of the assessee. On the other hand, the ld. DR has relied upon the order of the CIT(A) and submitted that the CIT(A) has granted the substantial relief to the assessee by allowing the claim to the extent of ₹ 60,000/- by considering the fact that in the preceding ye ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
