9911796707
TMI Blog2014 (6) TMI 325X X X X Extracts X X X X X X X X Extracts X X X X ..... The rendering of has not been denied at any stage - the directors were also incurring the travelling expenditure to travel between the assessee company and M/s Premier Hollowers Pvt ‘s office - it is a matter of fact that the directors have rendered the services to M/s Premier Hollowers Pvt Ltd. and also no salary has been debited on account of remuneration payable to these directors in the books of account of M/s Premier Hollowers Pvt Ltd. - If it is so then those directors have also worked for M/s Premier Hollowers Pvt Ltd and salary paid to them cannot be said to be exclusively have been paid for the services rendered by them to the assessee company - the AO was right in proportionate allocation of salary paid to the directors on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profit and loss account of M/s Premier Hollowares Pvt Ltd a group company and held as being excessive or unreasonable while comparing with the appellant s company and thus erred in adopting Premier Hollowers as yardstick. The ld. AO has not appreciated the fact that both are separate legal companies formed under the companies act and have separate books of account, the same facts are totally ignored by the ld. CIT(A); 5. The order under appeal is against the weight of evidence on the record and contrary to the facts on the record and additions made are contrary to principles of equity and natural justice and therefore in view of above grounds of appeal, the appellant prays your honour to allow the aforesaid expenses of Rs.2,11,858/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ales of the assessee company are Rs.20,18,85,802/- as against the sale of the sister concern at Rs.1,99,99,385/-. The ratio was worked out at 91:9 and a sum of Rs.2,11,858/- which was disallowed out of the salary paid to the directors. The disallowance has been sustained by the ld. CIT(A) on the ground that since the sister concern of the assessee was claiming deduction u/s 80IB there was a clear cut intention of M/s Premier Hollowares Pvt Ltd(sister concern) not to charge any salary to M/s Premier Hollowares Pvt Ltd but the whole salary and commission paid by the assessee company was to reduce its taxable income and the same cannot be allowed in view of the decision of the Hon ble Supreme Court in the case of Mc Dowells V/s CIT (154 ITR 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses incurred on salary by the assessee company cannot attributed to M/s Premier Hollowerrs Pvt Ltd. 7. We have considered the submissions on behalf of the assessee. The rendering of services by these directors to M/s Premier Hollowers Pvt. Ltd has not been denied at any stage. These directors were also incurring the travelling expenditure to travel between the assessee company and M/s Premier Hollowers Pvt s office which is situated at Naroli, District Silvasa, Dadra and Nagarhaveli. Therefore, it is a matter of fact that these directors have rendered the services to M/s Premier Hollowers Pvt Ltd. and also no salary has been debited on account of remuneration payable to these directors in the books of account of M/s Premier Hollow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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