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TMI Blog2016 (1) TMI 859X X X X Extracts X X X X X X X X Extracts X X X X ..... come on the ground that he has not actually received the same. We, therefore, do not find any infirmity in the action of the Departmental Authorities in assessing the amount of ₹ 6,60,822. However, we accept assessee’s alternative claim that if the said amount is treated as income of the assessee, then credit for TDS has to be given. As it appears from Form no.26AS, an amount of ₹ 68,064, has been deducted at source by the payer while crediting the interest amount of ₹ 6,60,822. We, therefore, direct the Assessing Officer to verify this fact and give credit of the TDS to the assessee accordingly. Disallowance of professional fee and salary expense - non–deduction of tax as reason as no proof of same has been submitted - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee has raised the following grounds: 1. On the facts and in the circumstances of the case and in law, the learned Commissioner (Appeals) erred in making addition of ₹ 6,60,822, as interest income on the basis of AIR data. 2. The Assessing Officer and the learned CIT(A) erred in disallowing professional fee of ₹ 1,00,000 citing non deduction of tax as reason as no proof of same has been submitted. 3. The Assessing Officer and the learned CIT(A) erred in disallowing salary expense of ₹ 2,75,000 as there is no proof of payment of salary and there is no proof of professional tax deducted from said salary. 2. As far as ground no.1, is concerned, the fact in brief are, the assessee is an indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee was not aware of any such interest payment as he actually did not receive interest. Therefore, it was not shown as income. However, the learned Counsel for the assessee admitted that the assessee is following mercantile system of accounting. Alternatively, it was submitted by the assessee that in case the amount of ₹ 6,60,822, is treated as assessee s income, then credit should be given to the tax deducted at source on such amount by the payer. In this context, the learned Counsel for the assessee submitted a copy of Form no.26AS evidencing deduction of tax of ₹ 68,064. 5. The learned Departmental Representative relied upon the decision of the first appellate authority. 6. We have considered the submissions of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te business streams and has separate sets of annual account for the two business. He found that the assessee is having proprietorship concern in the name and style of Roshan Communication, and the second one is in his individual name. 9. As far as his individual business activity is concerned, as per the Profit Loss account assessee has shown professional fee of ₹ 3.23 crore and claimed expenditure of ₹ 10,20,240 comprising of audit fee, bank charges, salary, depreciation, etc. As observed by the Assessing Officer, the professional fees is on account of non compete fee received from M/s. Digi Home Entertainment Pvt. Ltd. Therefore, he was of the view that as assessee has earned income from a single transaction there is no n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee referring to the Profit Loss account for the F.Y. 2007 08 corresponding to assessment year 2008 09, submitted, assessee s turnover from business or profession is much below the prescribed limit under section 44AB. Hence, assessee is not required to deduct tax. 12. As far as the expenditure incurred towards salary / wages, are concerned, the learned Counsel for the assessee submitted that the expenditure was disallowed only for the reason of absence of evidence. He submitted that salary was paid to regular employees only, however, details could not be filed before the first appellate authority as they were never called for. However, furnishing the details of salary payment through a statement showing the name of employees and salar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of section 194J. It is found that this argument advanced by the learned counsel before us was not taken before the Assessing Officer or the first appellate authority. Therefore, considering the submissions made by the learned counsel as aforesaid on applicability of section 194J as well as the additional evidence produced, we are of the view that the matter relating to allowance of assessee s claim on professional fee and salary requires examination afresh. Accordingly, the issue raised in grounds no.2 and 3 relating to claim of salary and professional fee is restored back to the file of the Assessing Officer for considering afresh after verifying the additional evidences and assessee s contentions on the issue. The Assessing Officer must ..... X X X X Extracts X X X X X X X X Extracts X X X X
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