9911796707
TMI Blog2021 (8) TMI 500X X X X Extracts X X X X X X X X Extracts X X X X ..... t lying seized with the department. A.O. observed that salary and bonus expenses are increased comparative to earlier assessment and disallowed 50% of salary and bonus expenses. A.O. has not rejected the books of accounts. There is not finding that salary and bonus expenses are bogus and not verifiable. CIT(A) conferred the order of A.O. by taking that no details were furnished. At the cost of repetition, we may note that ld. CIT(A) passed the order of ex parte without verification of facts and following the mandate of order of Tribunal. CIT(A) in A.Y. 2007-08 while deleting the addition find that no discrepancy in the books of account was pointed out while making disallowance of salary and bonus. Further, reasonableness of salary was no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring of the appeal. 2. Brief facts of the case are that assessee is engaged in the business of Cable Television Network. The assessee filed its return of income for A.Y. 2006-07 on 04.04.2008. The return of income was filed in response of notice under section 153C. The assessee was completed under section 143(3) r.w.s. 153C on 17.12.2008, determining total income of ₹ 52,61,247/- thereby making addition of ₹ 42.09 lacs on account of unaccounted income of the assessee and ₹ 9.70 lacs on account of estimated net profit of ₹ 9.70 lacs. On appeal before the ld. CIT(A), no relief was granted to the assessee. On further appeal, before the Tribunal, the matter was restored back to the file of Assessing Officer (in shor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The ld. CIT(A) fixed the hearing on 23.10.2017. The notice on 23.10.2017 was not complied as it was festival season. The ld. AR for the assessee submits that the assessee has got good case on merit. The AR for the assessee placed on record, the copy of order of Ld. CIT(A)-3, Surat dated 10.06.2019 wherein on identical grounds of appeal, on similar set of facts the assessee was allowed full relief for A.Y. 2007-08. The ld. AR for the assessee submits that fact for year under consideration is identical as on 2007-08, similar salary and bonus expenses were disallowed by A.O. and on appeal before the CIT(A), the similar ground is allowed. The ld. AR submits that in fact this ground of appeal raised by assessee, is now covered in favour of ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urther reiterated that the Bench may consider the decision of ld. CIT(A) in subsequent year instead of sending the matter back to the file of the ld. CIT(A). 6. We have considered the rival submissions of both the parties and perused the orders of the lower authorities and the material available on record. From perusal of contents of assessment order dated 29.03.2016 passed under section 143(3) r.w.s. 145C/254, we find that the matter was restored back to the file of the A.O. with the direction to consider the books of account lying seized with the department, though the assessee was directed to provide documents and details when called by the A.O. It was directed to provide the information within the fifteen days of receipt of order or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication for such an increase in salary expenses and therefore he disallowed the 50% of salary expenses and made the addition of ₹ 10,55,000/-. The appellant submitted that the A.O. has only made the addition on the ground that there is an increase in salary in comparison to earlier years without pointing out any defects in the books of accounts or pointing out any discrepancies. 6.1.2. On the perusal of details, it is observed that the A.O. has not pointed out any defects or discrepancies in the books of accounts while making this disallowance. He has made no efforts to examine the persons to whom salaries have been paid. The reasonableness of the salary payment cannot be questioned by the A.O. as such decisions are governed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
