Assessing Officer Challenges Employee Benefit Expenses, But Genuineness Accepted; Subsequent Income Proves Validity of Claims.

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....Disallowance of the expenses claimed on account of employees benefit expenses - AO making the disallowance on the ground that assessee has claimed the expenses basically to reduce its profitability because to earn income from the bank deposits and rental income, one need not require to incur huge legal and professional fees and entertainment expenses and such other expenses - Genuineness of the expenditure is not in dispute and the Company in subsequent assessment years has shown income from operations, claim of expenses allowed - AT....