9911796707
TMI Blog2024 (1) TMI 748X X X X Extracts X X X X X X X X Extracts X X X X ..... in the hands of the assessee on the premise that the said expenditure has been incurred by M/s Spring Travels Pvt. Ltd. on behalf of its director u/s 17(2) of the Act. This in our considered opinion, becomes a new source of income which CIT(A) is not entitled to add/enhance under the powers provided to him under the statute. In any event, the Ld.CIT(A) had also not given any enhancement notice to the assessee proposing to shift the addition from unexplained expenditure u/s 69C of the Act to perquisite u/s 17(2) of the Act, thereby violating the requirements of provisions of section 251(2) of Act. Hence, in any case, the addition made by the Ld. AO and sustained by the Ld. CIT(A) are on different count and deserves to be deleted. Accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. In response to the said notice, the assessee filed his return of income on 04/12/2019 declaring total income of Rs. 20,69,420/-. During the year under consideration, the assessee has shown salary of Rs. 17,90,400/- received from Spring Travels Pvt. Ltd. and has also shown income from house property and income from other sources. During the search, documents vide Annexure-1/ Party No. DR-2 was seized from the assessee s residential premises of the assessee. Some transactions were reflected at pages 91-92 of the seized document showing that an amount of Rs. 30,753/- was paid to HDFC on 20/03/2013 by the assessee. At the time of search, statement u/s 132(4) of the Act was recorded wherein with regard to this seized document, the assessee ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be treated as prerequisite as it is a payment made on behalf of its Director u/s 17(2) instead of section 69C of the Act. 6. From the above narration of facts which are undisputed, it could be seen that the lower authorities had categorically agreed that a sum of Rs. 30,753/- paid to HDFC by M/s Spring Travels Pvt. Ltd. by regular banking channels and the same was claimed as business promotion expenses by M/s Spring Travels Pvt Ltd. The same was treated as an unexplained expenditure in the hands of the assessee by the Ld. AO. Once it is proved that the said expenditure is reflected in the books of Spring Travels Pvt. Ltd. and sourced out of regular banking channels from the funds of the said company, the same cannot be added an unexplain ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
