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TMI Blog2021 (9) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... once the proper approval has been taken the writing off advance recoverable cannot be disallowed. It is a genuine business expenses, the additions made by the AO cannot be said to be in the nature of capital expenditure, since no enduring benefit accrues or arises to the assessee from advancing loan to the MD. Thus, the same accordingly acquires character of revenue expenditure. The said expense are being incurred wholly and exclusively for the purpose of the business of the assessee and hence, is fully deductable u/s 37(1) - Decided in favour of assessee. - I.T.A. No. 5820/DEL/2018 - - - Dated:- 23-9-2021 - MS SUCHITRA KAMBLE, JUDICIAL MEMBER AND SH. PRASHANT MAHARISHI, ACCOUNTANT MEMBER Appellant by : None Respondent by : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Central Government as well. 2.2. On the facts and circumstances of the case and in law, the learned CIT(A) has erred in confirming the action of the learned AO in disallowing remuneration paid to Director amounting to INR 30,55,082 by treating the same as a non-genuine business expense under section 37 of the Act as well as capital expenditure and hence liable to be disallowed. 2.3. On the facts and circumstances of the case and in law, the Ld.CIT(A) /A.O have erred in holding that the assessee should have either recovered such advances or adjusted it in the subsequent years salary of the Director. 3. Ground No. 3-Interest u/s 234B of the Act. 3.1. On the facts and circumstances of the case and in law, the learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Director of the assessee company. Accordingly, the Assessing Officer determined assessed income of ₹ 7,99,47,803/- under normal provisions of the Act and raised a total tax demand of ₹ 14,59,820/- including interest under Section 234B and 234C of the Act amounting to ₹ 9,46,168/- and ₹ 5,16,979/-. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT (A) has dismissed the appeal of the assessee. 5. At the time of hearing none appeared for the assessee despite giving notices. Hence, we are proceeding on the basis of contentions taken by the assessee before the Assessing Officer and before the CIT(A). 6. The Ld. DR relied upon the assessment order and the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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