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TMI Blog2019 (11) TMI 1802X X X X Extracts X X X X X X X X Extracts X X X X ..... sons and the nature of job/responsibility of each of the persons and accordingly he has come to a conclusion that the salary paid to Aradhana Mehra, Roshni Mehra and Pawan Mehra are justified where the salary paid to remaining persons are not justified. Decided against assessee. Disallowance of interest u/s 37 r.w.s. 40A(2)(b) - assessee reiterated the arguments which were made before the lower authorities, particularly in relation to the trademark of Mehrasons owned by Sh. CL Mehra - HELD THAT:- The Tribunal in assessment year 2011-12 sustained the disallowance [ 2018 (4) TMI 697 - ITAT DELHI] as it cannot be treated as prudent and expedient for the business purposes. Disallowance u/s 14A - counsel submitted that no dividend i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me section was not applicable. He also overruled the Hohab'le Delhi High Court Judgment for which Ld. CIT was bound to comply and obey. 5. That That the assessee reserves the right to add, delete , alter and modify to the above grounds of appeal. 2. Briefly stated facts of the case at that the assessee company is engaged in the business of manufacturing of jewelry, trading of bullion and diamonds. For the year under consideration, the assessee filed return of income on 29/09/2012 declaring Nil income under regular provisions of the Income-tax Act, 1961 (in short the Act ) and income of the Rs.51,47,486/- u/s 115JB of the Act. The case was selected for scrutiny and statutory notices were issued and complied with. The scruti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the persons in the industry and services rendered, the expenses might be allowed in the hands of the assessee. 4.3 The ld. DR, on the other hand, relied on the order of the lower authorities. 4.4 We have heard the rival submission and perused the relevant material on record. The Assessing Officer made disallowance under section 40A(2)(b) of the Act due to lack of any justification for higher salary paid to relatives as compared to assessment year 2010-11. The learned CIT(A) examined the qualification and experience of the persons and did not find any justification in respect of salary expenses of Sh. C.L. Mehra and Ms. Lata Rani Mehra following the decision of his predecessor. In respect of Ms. Namita Mehra also be sustained the disal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities, particularly in relation to the trademark of Mehrasons owned by Sh. CL Mehra. The learned CIT(A) following the finding of his predecessor in assessment year 2011-12 sustained the disallowance of interest in respect of Sh. CL Mehra, M/s. Mehra and Sons HUF, Mr. Chand Mehra and Mr. Vinay Mehra. The Tribunal in assessment year 2011-12 sustained the disallowance observing as under: 20. After hearing both the sides, we find the Id. CIT(A) sustained the disallowance made by the Assessing Officer on the ground that the assessee failed to prove that C.L. Mehra owns the trademark Mehrasons and C.L. Mehra is not at all the owner of the trademark Mehrasons and the amount advanced to C.L. Mehra cannot be treated as prudent and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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