Appeal success for professional fees, donation disallowance upheld.

The appeal involved the disallowance of professional fees paid to directors of the assessee company for fitness services at Khar Gymkhana. The Tribunal found the evidence sufficient and directed the deletion of the disallowance, noting compliance with the Board Resolution and directors' qualifications. However, the disallowance of a donation during Ganesh Utsav was upheld due to lack of evidence. The appeal was partly allowed regarding professional fees but dismissed concerning the donation, with the Tribunal's decision issued on April 1, 2021.

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Issues: Disallowance of professional fees paid to directors and disallowance of donation

Disallowance of Professional Fees:
The appeal involved the disallowance of professional fees paid to directors of the assessee company. The appellant contended that the fees were paid for services rendered in providing fitness services at Khar Gymkhana. The appellant entered into a Memorandum of Understanding with Khar Gymkhana for this purpose. The Board Resolution authorized the payment of fees to the directors. The appellant provided evidence of the directors' qualifications and the services rendered. The Assessing Officer disallowed the fees due to lack of documentary evidence. However, the Tribunal found the evidence submitted by the appellant sufficient and noted that the fees were offered for taxation by the directors as well. The disallowance was deemed unjustified, and the Tribunal directed its deletion. The Tribunal highlighted that the fees were paid in accordance with the Board Resolution and the directors' qualifications, and there was no evidence of excess payment. The appeal on this issue was allowed.

Disallowance of Donation:
The second issue pertained to the disallowance of a donation of Rs. 6,000 made during Ganesh Utsav. The Assessing Officer disallowed the donation due to the absence of documentary evidence to substantiate it. The appellant failed to produce any evidence before the Tribunal as well. As a result, the appeal on this issue was dismissed. The Tribunal upheld the disallowance of the donation due to the lack of supporting evidence presented by the appellant.

In conclusion, the appeal was partly allowed concerning the disallowance of professional fees paid to directors, which was deemed unjustified and directed to be deleted. However, the disallowance of the donation was upheld due to the absence of documentary evidence. The Tribunal's decision was pronounced on April 1, 2021.

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