9911796707
TMI Blog2021 (8) TMI 789X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment year on 29/09/2015 declaring total income of Rs. 3,56,370/-. In scrutiny assessment proceedings, the Assessing Officer disallowed payment of professional fees Rs. 6,35,656/- paid to the Directors and donations of Rs. 6,000/- paid during Ganesh Utsav. The ld. Authorized Representative of the assessee submitted that the assessee entered into a Memorandum of Understanding with Khar Gymkhana on 14/05/2014 for providing professional physical fitness programme of Crossfit Inc., a global brand for fitness services (page 9 to 14 of paper book). The ld.Authorized Representative of the assessee submitted that Dheepesh Bhatt, Director of assessee company is a certified Crossfit Level -1 trainer (page 17 of paper book) and Ms. Payal Goel is MBA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee further submitted that in the immediate succeeding assessment year i.e. assessment year 2016-17, the professional fees paid to the directors for professional services rendered at Khar Gymkhana was allowed by the Assessing Officer in assessment order passed under section 143(3) of the Income Tax Act, 1961 (in short 'the Act') at page 27 to 29 of the paper book. 2.2. In respect of disallowance of donation Rs. 6000/-, the ld.AR submitted that the donation was made during Ganesh Utsav on account of commercial expediency. The name of assessee was displayed in the list of donors in Ganesh Pandal. The display of asssessee's name was a sort of advertisement. 3. Per contra, Shri Sanjay J. Sethi representing the Department vehemently ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tentions with documentary evidence. The assessee has field Memorandum of Understanding (MOU) with Khar Gymkhana at page 9 to 14 of the Paper Book. An examination of MOU reveals that the assessee was to extend professional physical fitness programme of 'CrossFit Inc.' for the benefit of Khar Gymkhana Members. The assessee was responsible for establishing and operating fitness programme, provide qualified experienced professionals for fitness services, liable for payment of wages and compensation to staff/trainers deployed at Khar Gymkhana fitness centre, source necessary materials, products & equipment for training programme, etc. For the services rendered, the assessee was entitled to receive 70% share in charges (excluding service tax) col ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. The disallowance of payment of professional fee to the directors is unjustified, hence, the same is directed to be deleted. It would be relevant to mention here that both the directors in their respective return of income has offered professional fee received from the assessee to tax. Consequently, ground No.1 of the appeal is allowed. 6. In ground No.2 of the appeal, the assessee has assailed disallowance of donation Rs. 6,000/-. The Assessing Officer made disallowance as no documentary evidence was filed by the assessee in the form of receipt, etc. to substantiate the donation made. Even before the Tribunal no evidence is produced by the assessee. In the absence of any evidence ground No.2 of the appeal is dismissed. 7. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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