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TMI Blog2021 (5) TMI 920X X X X Extracts X X X X X X X X Extracts X X X X ..... without considering the facts disallowed on the pretext of not deducted tax at source and The Learned CIT(A) erred in confirming the same. ii. That no services of any contractor were availed and the A.O. merely conjecture having made payments to contractor for Rs. 324000/- without TDS and wrongly disallowed the salaries. iii. That inspite of confirmations submitted the AO without application of his mind arbitrarily disallowed the shop rent paid Rs. 120000/- & godown rent of Rs. 236379/- to four co-owners individuals and the Learned CIT(A) erred in confirming the same. iv. That interest of Rs. 86,410/- has wrongly been charged on advances made for commercial expediency. v. That there was no justification for adding Rs. 250000 for al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only Rs. 2.50 lakhs per annum, the AO made estimated addition of Rs. 25,000/- on account of withdrawals for house hold expenses. Similarly, the AO disallowed an amount of Rs. 62,176/- being 1/6th of the total expenses to Rs. 3,73,060/- incurred by the assessee on account of car running expenses, car depreciation, maintenance expenses, car insurance, telephone/mobile bill and interest on car loan for probable personal use. Thus, the AO determined the total income of the assessee at Rs. 13,59,700/- as against the returned income of Rs. 5,05,750/- 4. In appeal, the learned CIT(A) called for a remand report from the AO. After considering the remand report of the AO and rejoinder of the assessee to such remand report, he restricted the disallo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the payment was made to individual persons and confirmation were also filed before the learned CIT(A). We find the learned CIT(A) rejected the same on the ground that this evidence is not a clinching evidence with regard to proof of payment of salary to the persons engaged by her as security guards. According to her, the assessee has not produced copy of any salary register and attendance register. We find the assessee in the instant case is a small assessee and has produced confirmation of the persons on the letter head of its firm as proof of payment of salary to these persons. Merely because the assessee has not disclosed mode of payment of salary i.e. either by cheque or cash, the same in our opinion should not doubted by the learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o Mr. Ashok Juneja who is proprietor of M/s Devsons Sanitation and is an exiting income tax assessee at Panipat, who has filed income tax return for AY 2012-13. Further, the rent paid was below statutory limit u/s 194(1) of the Act and therefore there was no necessity for deducting tax source. However, we find the learned CIT(A) after obtaining the remand report from the AO dismissed the ground raised by the assessee on this issue by observing as under:- "5.3. The A.O. has clearly pointed out the absence of documentary evidence in respect of rent paid at the assessment as well as the remand stage. The documents submitted are basically certificates issued by the appellants and purportedly singed by the co-owners which lack verifiablility. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this issue except stating that it was needed for business dealings. From the various details furnished by the assessee, we do not find what was the reason for giving such advance. The commercial expediency of the same has not been established. Further, it has not been established as to whether the assessee's own capital and free reserves are more than the interest free advance extended by the assessee during the impugned assessment year. Considering the totality of facts of the case and in the interest of justice, we restore this issue to the file of the AO with a direction to give one more opportunity to substantiate the commercial expediency or to substantiate that her own capital and free reserves is more than the interest free advance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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