9911796707
TMI Blog2021 (12) TMI 941X X X X Extracts X X X X X X X X Extracts X X X X ..... . The assessee has raised following grounds in this appeal:- 1. "It is contended that the CIT(A) has erred in conforming the addition of Rs. 14,38,628/- out of salary, staff welfare and bonus claimed in the P&L Account. 2. It is contended that the assessee is an established LIC agent working for more than 30 years and serving almost 8,000 clients geographically spread over. The door-step series provided essentially require an elaborate field staff. 3. It is contended that the computation of Tax and interest needs to be worked." 2. Facts giving rise to the present appeal are that the assessee filed return of income on 07.10.2014 declaring income at Rs. 8,38,360/-. Subsequently, the case was selected for scrutiny assessment and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. 6. Ld. D.R opposed these submissions ad submitted that no reasonable cause is demonstrated by the assessee. Therefore, the appeal deserves to be dismissed being barred by time. 7. I have heard the Ld. Authorized Representative (AR) for the assessee and Ld. DR for the Revenue and perused the material available. Looking to the extra ordinary circumstances and wide spread of Covid-19 during the relevant time. I hereby condone the delay and admit the appeal for hearing. 8. The only effective ground is against confirming the addition of Rs. 14,38,628/- made on account of disallowance of expenses out of salary, Staff Welfare and Bonus etc. 9. Ld. Counsel for the assessee submitted that the entire addition has been made purely on the basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to keep it running he had to do the various expenses which are very much necessary to conduct in these types of business to make it run. Therefore, the expenses claimed are reasonable and genuine. The contentions of the AR have been considered and the order of the AO has also been perused. It was noticed by the AO that the assessee had debited bonus amounting to Rs. 4,00,000/-, salary amounting to Rs. 26,34,775/- and staff welfare amounting to Rs. 78,492/- which comes to near 46.47% of the total commission as per P&L a/c for FY 2013- 14 which is not reasonable as per the business in which the assessee operates. It was further observed by the AO that the assessee does not pay salary regularly for the year under consideration to few emplo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities below cannot be sustained. I, therefore, direct the A.O to delete the addition. The ground of assessee's appeal is allowed. 12. In result, the appeal of the assessee is allowed. 13. Now, we take up the appeal of the assessee in ITA No. 1449/Del/2020. The assessee has raised following grounds of appeal:- ITA No. 1449/Del/2020 "1. It is contended that the CIT(A) has erred in confirming the addition of Rs. 13,93,501/- out of salary, staff welfare and bonus claimed in the P & L Account. 2. It is contended that the assessee is an established LIC Agent working for more than 30 years and serving almost 8,000/- clients geographically spread over. The door-step services provided essentially require an elaborate field staff. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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