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TMI Blog2017 (12) TMI 751X X X X Extracts X X X X X X X X Extracts X X X X ..... unity to produce it before the Departmental Authorities. In view of the aforesaid, we restore the issue to the file of the Assessing Officer with a direction to verify assessee’s claim by taking note of the revised Form no.26AS issued by the insurance company and decide the issue after due opportunity of being heard to the assessee. This ground is partly allowed for statistical purposes. Disallowance of director’s remuneration paid - addition u/s 40A - Held that:- The assessee has submitted before us that such payment of salary is due to contractual obligation, however, no such documentary evidence has been brought on record to prove such facts and also to indicate the exact nature of work being done by the concerned director and the eff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the course of assessment proceedings, the Assessing Officer noticing discrepancies between the brokerage income shown by the assessee as per the books of account and as reflected in Form no.26AS called upon the assessee to reconcile them. Though, the assessee attempted to reconcile the discrepancies by furnishing some explanation, however, the Assessing Officer was not convinced with the submissions of the assessee and added back the amount of ₹ 15,60,133. Though, the assessee challenged the addition before the first appellate authority, however, he did not find any success. 4. At the outset, the learned Authorised Representative referring to the concise ground of appeal submitted that out of the addition of ₹ 15,60,133, r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailable on record. The addition of brokerage income is purely due to the discrepancy in the income shown by the assessee and income reflected in Form no.26AS uploaded by the insurance company. However, before us, the assessee has filed the revised Form no.26AS, issued by the Insurance Company, as per which the total brokerage income received by the assessee is ₹ 44,00,963, which is claimed to be lesser than the brokerage income offered by the assessee from the said Insurance Company. Since, the aforesaid revised Form no.26AS was obtained after disposal of appeal by the learned Commissioner (Appeals), the assessee had no opportunity to produce it before the Departmental Authorities. In view of the aforesaid, we restore the issue to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment order, did not accept the claim of the assessee and added back the enhanced amount of ₹ 50 lakh paid as salary during the relevant previous year by invoking section 40A(2) of the Act. 9. Though, the assessee challenged the addition before the first appellate authority, however, the learned Commissioner (Appeals) confirmed the addition accepting the reasoning of the Assessing Officer. 10. Learned Authorised Representative reiterating the stand taken before the Departmental Authorities submitted that Shri Sandeep Dadia, did not held any share in the assessee company and was an employee director. He submitted, the said director joined the company on 1st April 2006 and being a qualified Doctor was the key person of the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rease in salary to one person with proper reasoning. Though, the assessee has stated that the concerned director has immensely helped the development of the business of the company, however, what prompted the assessee to increase the salary to more than double the amount paid in the preceding assessment year has to be brought on record. Though, the assessee has submitted before us that such payment of salary is due to contractual obligation, however, no such documentary evidence has been brought on record to prove such facts and also to indicate the exact nature of work being done by the concerned director and the effect of such work on the business of the assessee to justify such increase in salary. The assessee has to prove that the salar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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