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TMI Blog2023 (5) TMI 574X X X X Extracts X X X X X X X X Extracts X X X X ..... ills and vouchers. Such observation of the auditor is similar to the observations made for the payment to the relatives under section 40A(2)(b) which cannot lead to disallowance of all expenses but only if the case of the assessee is scrutinized and such expenditure incurred for which payment has been made to relatives has to be examined by the ld. Assessing Officer as to whether such expenses are excessive or unreasonable having regard to the fair market value of the goods services or facilities, then such excess expenditure claimed by the assessee may be disallowed. Thus for the information regarding subscription and club services prima facie no adjustment was possible under the provisions of section 143(1)(a)(iv) of the Act and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the adjustments referred in section 143(1)(a) of the Act. 4. On the other hand, ld. Departmental Representative submitted that the alleged expenses are personal in nature and has been indicated in the tax audit report based on which alleged disallowance has been made. 5. We have heard the rival contentions and perused the relevant record placed before us. We notice that the assessee incurred subscription expenses of Rs.92,949/- and club services expenses of Rs.3,55,041/-. In the tax audit report in Point No.21(a), such expenses have been mentioned. The Centralized Processing Centre (CPC) has treated that the alleged expenses are personal in nature as the auditor has indicated for the disallowance of such expenditure. Further, ld. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of the assessee is scrutinized and such expenditure incurred for which payment has been made to relatives has to be examined by the ld. Assessing Officer as to whether such expenses are excessive or unreasonable having regard to the fair market value of the goods services or facilities, then such excess expenditure claimed by the assessee may be disallowed. Therefore, we are of the considered view that for the information regarding subscription and club services prima facie no adjustment was possible under the provisions of section 143(1)(a)(iv) of the Act and the CPC has exceeded its jurisdiction for making alleged disallowances. Going into the merits of the case as to whether of personal in nature was involved in the alleged amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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