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TMI Blog2021 (1) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... econciled amount thereby giving the assessee one more opportunity to reconcile the difference before the Ld. AO. It is ordered accordingly. Addition made towards Salaries and other benefits to the employees, Managing Director and Vice President of the assessee company - Since the assessee did not furnish the details of the salaries paid to the individual employees such as the name, designation, PAN, amount of salary paid to each individual, details of TDS made thereon, the ld. AO opined that 10% of the aggregate amount should be disallowed on estimate basis - CIT(A) enhanced the disallowance from 10% to 50% - HELD THAT:- It is a relevant fact that the entire business operation of the assessee company has been technically operated and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO added the difference to the income of the assessee - HELD THAT:- CIT(A) failed to adjudicate the issue. Since the amount of ₹ 1,33,132/- is reconciled and verified by the Ld. AO, We are of the considered view that the addition is not sustainable. Therefore, in the interest of justice, We hereby direct the Ld. AO to delete the addition. - ITA No. 1043/Hyd/2017 - - - Dated:- 3-9-2020 - P. Madhavi Devi, Member (J) And A. Mohan Alankamony, Member (A) For the Appellant : A.V. Raghuram For the Respondents : Murali Mohan, DR ORDER A. Mohan Alankamony, Member (A) 1. This appeal is filed by the assessee against the order of the Ld. CIT(A)-4, Hyderabad in appeal No. 0578/14-15/ITO, Wd. 16(1)/CIT(A)-4/Hyd/16-17, date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refund. Thereafter the case was taken up for scrutiny and finally assessment U/s. 144 of the Act was completed vide order dated 17/2/2015 wherein the Ld. AO made several additions by passing ex-parte order because there was no compliance by the assessee. On appeal, the Ld. CIT(A) obtained a remand report from the Ld. AO wherein the assessee furnished the details sought for. The Ld. AO in the remand proceedings gave substantial relief to the assessee. However, the Ld. CIT(A) confirmed the original order of the Ld. AO and also made enhancement with respect to the salary paid to the Managing Director and the Vice President of the assessee company. Aggrieved by the order of the Ld. CIT(A), the assessee is now on appeal before us. 4. Ground N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... But, under the pretext that the assessee has not raised the ground before him the Ld. CIT(A) has unjustly confirmed the entire addition. Therefore, We hereby direct the Ld. AO to delete the addition for ₹ 21,73,478/- made on this count and further we remit the matter back to the file of Ld. AO with respect to the balance unreconciled amount of ₹ 55,082/- thereby giving the assessee one more opportunity to reconcile the difference before the Ld. AO. It is ordered accordingly. 7. Ground No. (ii): Addition made towards Salaries and other benefits to the employees, Managing Director and Vice President of the assessee company:- 8. During the course of scrutiny assessment proceedings, the Ld. AO observed that the assessee has c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ehemently argued in support of the order of the Ld. CIT(A) he could not controvert successfully against the arguments advanced by the Ld. AR. 10. After considering the rival submission, we find merit in the submission of the Ld. AR. It is a relevant fact that the entire business operation of the assessee company has been technically operated and controlled by the Professionally Qualified Managing Director and Vice President of the assessee company. Therefore, we are of the considered view that the salary paid to the Managing Direction and the Vice President is commensurate with the professional qualification, experience and job executed by them on behalf of the assessee Company. Further, the assessee has furnished all the particulars of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,132/-:- 14. During the course of scrutiny assessment proceedings, the Ld. AO observed that in the cash book of the assessee an amount of ₹ 2,42,910/- was disclosed as the bank balance while as an amount of ₹ 3,76,042/- was reflected in the Bank Statement. Therefore, the Ld. AO added the difference of ₹ 1,33,132/- to the income of the assessee. In the remand proceedings, the assessee had furnished the reconciliation statement and the same was accepted by the Ld. AO. However, the Ld. CIT(A) failed to adjudicate the issue. Since the amount of ₹ 1,33,132/- is reconciled and verified by the Ld. AO, We are of the considered view that the addition is not sustainable. Therefore, in the interest of justice, We hereby dire ..... X X X X Extracts X X X X X X X X Extracts X X X X
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