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TMI Blog2023 (8) TMI 761X X X X Extracts X X X X X X X X Extracts X X X X ..... g of its affairs. The existence of person to whom such salary was paid is not doubted by the assessing officer, rather held that there is sufficient staff with the assessee. The action of AO was not justified to assess the justification of number of employees or their expenses, therefore, direct AO to allow the salary expenses to the assessee. Decided in favour of assessee. - SHRI PAWAN SINGH, JUDICIAL MEMBER For the Appellant : Shri Unmesh Dalal, AR For the Respondent : Shri Vinod Kumar, Sr. DR Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of learned National Faceless Appeal Centre, Delhi (NFAC)/Commissioner of Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ld. CIT(A)/NFAC on 06/08/2022, however, the present appeal is filed on 10/03/2023, thus, there is delay of about 152 days in fling the appeal before the Tribunal. The assessee has filed application for condonation of delay along with affidavit of secretary of assessee society. In the application, the assessee stated that the Secretary of assessee society Shri Shashikant Harilal Waghela was looking after the financial and taxation affair of assessee society. His father was seriously sick and ultimately died on 21/01/2023. Death certificate and medical certificate issued by the Doctor is filed on record. The learned Authorised Representative (ld. AR) of the assessee submits that the assessee society is a small cooperative credit society, Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... already placed on record. Considering the facts and circumstances of the case and the cause of delay explained by the ld. AR of the assessee, I find that the assessee has shown reasonable cause for condonation of delay. Even otherwise, it is settled position under law of limitation that when technical consideration and cause of substantial justice are pitted against each other, the cause of substantial justice must be prevailed. Keeping in view such principle, the delay in filing appeal is condoned. Now adverting to the various grounds of appeal raised by the assessee. 5. At the outset of hearing, the ld. AR of the assessee submits that he is not pressing grounds No. 1, 2, 4 and 6 of the appeal and the same may be dismissed being not pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 80P of the Income Tax Act, 1961 (in short, the Act). The case of assessee was selected for limited scrutiny. During the assessment, the Assessing Officer noted that the assessee has debited major expenses against commission income is on account of salary expenses of Rs. 4,33,700/-. The total salary expenses debited is Rs. 5,33,000/-. The assessee was issued show cause whether the assessee society has employed separate employee for daily collection charges. The assessee explained that staff is common for both the activities. The staff of collection charges are mostly engaged in the business of collection. The reply of assessee was not accepted by the Assessing Officer by taking a view that considering the volume of business activities of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . I have considered the submissions of both the parties and perused the record carefully. I find that the Assessing Officer disallowed the expenses of Rs. 1.00 lacs by taking a view that considering the volume of business activities of providing credit facility, the staff is sufficient and disallowed the salary of employee engaged for collection charges. In my view, the assessee is the best person to assess its requirement for smooth functioning of its affairs. The existence of person to whom such salary was paid is not doubted by the assessing officer, rather held that there is sufficient staff with the assessee. Considering the facts and circumstances of the case, I am of the view that the action of Assessing Officer was not justified to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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