ITAT partially allows appeal on rent payment, remits professional fees issue for further examination.

The ITAT partially allowed the appeal, overturning the disallowance of rent payment to OPC Asset Solutions Private Limited and remitting the issue of professional fees paid to Ms. Namrata Goel and Ms. Nidhi Goel back to the Assessing Officer for further examination. The ITAT held that the rent payments were genuine and for business purposes, emphasizing that the revenue authority cannot determine the deduction amount. The order was pronounced on 28th June 2021.

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Issues:
1. Disallowance of rent payment to OPC Asset Solutions Private Limited.
2. Disallowance of professional fees paid to Ms. Namrata Goel and Ms. Nidhi Goel.

Issue 1: Disallowance of Rent Payment to OPC Asset Solutions Private Limited:
The appellant contested the disallowance of INR 40,19,520 towards lease rent paid to OPC Asset Solutions Private Limited. The Assessing Officer noted that the rent payment pattern indicated a postponement of income tax liability. The CIT(A) enhanced the disallowance to INR 49,26,033 based on previous year's average rent calculation. However, the ITAT found the rent payments were genuine and for business purposes. Citing legal precedents, the ITAT held that the revenue authority cannot determine the deduction amount. The ITAT overturned the disallowance, stating the revenue authorities were unjustified in altering the claim.

Issue 2: Disallowance of Professional Fees:
The appellant disputed the disallowance of professional fees paid to Ms. Namrata Goel and Ms. Nidhi Goel. The Assessing Officer contended that the services' nature and impact on the business were not proven. The CIT(A) upheld the disallowance, citing lack of evidence of services rendered. The appellant argued that the employees were qualified professionals working on a retainer basis for business benefits. The ITAT, considering natural justice, remitted the matter back to the AO for further substantiation by the appellant. The ITAT allowed the ground for statistical purposes, providing the appellant with another opportunity to support their claim.

In conclusion, the ITAT partially allowed the appeal, overturning the disallowance of rent payment and remitting the professional fees issue back to the AO for further examination. The order was pronounced on 28th June 2021.

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