2021 (8) TMI 789

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....s return of income for the impugned assessment year on 29/09/2015 declaring total income of Rs. 3,56,370/-. In scrutiny assessment proceedings, the Assessing Officer disallowed payment of professional fees Rs. 6,35,656/- paid to the Directors and donations of Rs. 6,000/- paid during Ganesh Utsav. The ld. Authorized Representative of the assessee submitted that the assessee entered into a Memorandum of Understanding with Khar Gymkhana on 14/05/2014 for providing professional physical fitness programme of Crossfit Inc., a global brand for fitness services (page 9 to 14 of paper book). The ld.Authorized Representative of the assessee submitted that Dheepesh Bhatt, Director of assessee company is a certified Crossfit Level -1 trainer (page 17 o....

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....0 ITR 74 (SC) 2.1. The ld.Authorized Representative of the assessee further submitted that in the immediate succeeding assessment year i.e. assessment year 2016-17, the professional fees paid to the directors for professional services rendered at Khar Gymkhana was allowed by the Assessing Officer in assessment order passed under section 143(3) of the Income Tax Act, 1961 (in short 'the Act') at page 27 to 29 of the paper book. 2.2. In respect of disallowance of donation Rs. 6000/-, the ld.AR submitted that the donation was made during Ganesh Utsav on account of commercial expediency. The name of assessee was displayed in the list of donors in Ganesh Pandal. The display of asssessee's name was a sort of advertisement. 3. Per contra,....

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....ssional fee has been disallowed primarily for the reason that the assessee has not supported his contentions with documentary evidence. The assessee has field Memorandum of Understanding (MOU) with Khar Gymkhana at page 9 to 14 of the Paper Book. An examination of MOU reveals that the assessee was to extend professional physical fitness programme of 'CrossFit Inc.' for the benefit of Khar Gymkhana Members. The assessee was responsible for establishing and operating fitness programme, provide qualified experienced professionals for fitness services, liable for payment of wages and compensation to staff/trainers deployed at Khar Gymkhana fitness centre, source necessary materials, products & equipment for training programme, etc. For the serv....