2020 (11) TMI 944

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.... books of accounts by C.A. have been maintained duly audited U/s 44 AB of IT Act, whether the Learned CIT(A)was legally justified in confirming addition on account of godown rent paid for the prosperity of the business @ 15000/- pm totaling Rs. 180000/- p.a. to Shri Ganesh Gupta S/o Late. Shri Ram LaganGupta, resident of Azad Nagar, Maharajganj during Previous Year 2013- 14 relevant for A.Y. 2014-15. 2. That on the facts and in the circumstances of this case whether the Learned CIT(A) was legally justified in confirming addition of Rs. 180000/- in respect of godown rent paid as above when the same expense was duly debited in audited Trading and Profit & Loss A/c and also the same amount was duly debited in P.&L. A/c in A.Y. 2013-14....

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....and against provisions of law & is liable to be deleted. 8. That on the facts and in the circumstances of this case, the additions made and confirmed by Learned CITA) are arbitrary and excessive." 2. Ground No. 1 to 5 are regarding disallowance of godown rent. The assessee has claimed Rs. 1,80,000/- on account of godown rent. The AO asked the assessee to submit the copy of the ledger account along with the bills and vouchers in support of the claim. In response to that the assessee filed only copy of the ledger account of godown rent showing the monthly rent of Rs. 15,000/- total amounting to Rs. 1,80,000/-. The AO disallowed the claim of godown rent on the ground that the assessee has neither filed copy of rent agreement in sup....

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....ot be accepted. Thus in the absence of any supporting evidence of actual payment of rent, the claim is not allowable. He has relied upon the orders of the authorities below. 5. Having considered the rival submissions as well as the relevant material on record, it is noted that the claim of godown rent of Rs. 1,80,000/- was disallowed by the AO for want of any supporting evidence and particularly the rent agreement. From the confirmation of the rent received, it is noted that the rent was paid by the assessee to his father and, therefore, the identity of the father of the assessee cannot be disputed. Further when the father of the assessee is not an income tax assessee then the question of giving of details of PAN number does not arise. H....

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....ledger account, therefore, the assessee has failed to establish the claim when neither the bonus register nor the bills and vouchers were produced by the assessee. 7. On appeal, the CIT(A) has granted part relief and restricted and allowed the claim of the expenditure to Rs. 60,000/- as against Rs. 90,326/- made by the AO. 8. Before the Tribunal, the ld. AR of the assessee has submitted that the department has accepted the claim of bonus of Rs. 60,450/- in the earlier year and, therefore, the claim of bonus paid to the staff cannot doubted in the year under consideration. He has referred to the order of the CIT(A) and submitted that the CIT(A) has restricted the claim only to the amount of bonus which was paid in the preceding year wh....