TMI Blog2021 (8) TMI 789X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the directors to show that the directors were professionally qualified to provide the services. Assessee has pointed that in the subsequent assessment year the professional fee paid to the directors has been allowed by the Assessing Officer in scrutiny assessment proceedings on same set of documents. It is not the case of Revenue that the professional fees paid to the directors is in excess of the market rate. I find merit in the contentions raised by the assessee. The disallowance of payment of professional fee to the directors is unjustified, hence, the same is directed to be deleted. It would be relevant to mention here that both the directors in their respective return of income has offered professional fee received from the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or fitness services (page 9 to 14 of paper book). The ld.Authorized Representative of the assessee submitted that Dheepesh Bhatt, Director of assessee company is a certified Crossfit Level -1 trainer (page 17 of paper book) and Ms. Payal Goel is MBA from University for Wales (page 21 of paper book) and is managing affairs of the business and Gym. The assessee provided equipment and specialised professional training at Khar Gymkhana. The appellant vide Board Meeting held on 10/03/2014 resolved to pay ₹ 20,000/- per month to each of the directors w.e.f. 01/05/2014 for the professional services. Further, the assessee paid ₹ 97,828/- to both the directors towards personal training programme. The Assessing Officer and the CIT(A) have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during Ganesh Utsav on account of commercial expediency. The name of assessee was displayed in the list of donors in Ganesh Pandal. The display of asssessee s name was a sort of advertisement. 3. Per contra, Shri Sanjay J. Sethi representing the Department vehemently defended the impugned order and prayed for dismissing the appeal by assessee. The ld. Departmental Representative submitted that the Accounts Manager of Khar Gymkhana expressly stated that Shri Kirnay Ashwin Bhatt is head trainer at Khar Gymkhan and professional fees is paid to him for the services offered by him. The assessee failed to provide any documentary evidence before the Assessing Officer or the CIT(A) regarding agreement with Khar Gymkhana. The ld. Departmental Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ook. An examination of MOU reveals that the assessee was to extend professional physical fitness programme of CrossFit Inc. for the benefit of Khar Gymkhana Members. The assessee was responsible for establishing and operating fitness programme, provide qualified experienced professionals for fitness services, liable for payment of wages and compensation to staff/trainers deployed at Khar Gymkhana fitness centre, source necessary materials, products equipment for training programme, etc. For the services rendered, the assessee was entitled to receive 70% share in charges (excluding service tax) collected by Khar Gymkhana from its members and 80% of charges collected from non-members. The said MOU clearly indicates that the assessee was t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t would be relevant to mention here that both the directors in their respective return of income has offered professional fee received from the assessee to tax. Consequently, ground No.1 of the appeal is allowed. 6. In ground No.2 of the appeal, the assessee has assailed disallowance of donation ₹ 6,000/-. The Assessing Officer made disallowance as no documentary evidence was filed by the assessee in the form of receipt, etc. to substantiate the donation made. Even before the Tribunal no evidence is produced by the assessee. In the absence of any evidence ground No.2 of the appeal is dismissed. 7. In the result, appeal of the assessee is partly allowed in the terms aforesaid. Order pronounced in the open Court on Thursday, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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