2012 (12) TMI 1223

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....t, Sr.D.R. ORDER PER J. SUDHAKAR REDDY, AM This is an appeal filed by the assessee against the order of the Commissioner of Income Tax (Appeals)-XXVIII, New Delhi dt. 01.10.2010 pertaining to the Assessment Year 2006-07 on the following effective ground. "1. That under the facts and circumstances, there is no legality and justification for making and sustaining the following disa....

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....e wife of one of the Partners of the assessee firm. The Assessing  Officer further observed that certain other employees of the firm, who have similar qualification as Smt.Meenu Garg are drawing lesser salary i.e. Rs. 10,500/- per month or Rs. 17,000/- per month and hence the payment to Meenu Garg is excessive. It was further recorded that Ms Meenu Garg is also drawing salary of Rs. 1,80,000/....

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....fore the Commissioner of Income Tax (Appeals), the assessee, for proving the genuineness of the salary, submitted a list of employees, and also produced four employees in remand proceedings, on the directions of the Assessing Officer . Affidavits of these employees were filed and they were also examined by the Assessing Officer in remand proceedings. Ms.Meenu Garg is a qualified Lawyer and she has....

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.... in support of his claim of incurring expenditure on staff salaries. The disallowance is made on surmises and in a Ad-hoc manner. Thus we allow this ground of the assessee. 7. Coming to the issue of Service tax, the assessee has produced copies of challans, evidencing payment of service tax. The Assessing Officer, without any verification, enquiry or investigation, rejected the claim of the ass....