TaxTMI 
TaxTMI 
2022 (3) TMI 839
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....ing the appeal is bad in law and is in gross violation of the provisions of the Income Tax Act. 1.2 The CIT(A) ought to have quashed the intimation inasmuch as the disallowances made are not prima facie adjustments contemplated in Sec. 143(1) of the IT Act; and hence beyond the jurisdiction of the Assessing Officer. 2.1 The CIT(A) erred in upholding the disallowance of additional expenditure in the nature of car expenses to the tune of Rs. 4,316/- without considering the breakup of the conveyance and car expenses in a proper perspective. 2.2 The CIT(A) erred in upholding the disallowance of club expenses of Rs. 99,549/- and club subscription amounting to Rs. 2,09,799/- totaling to Rs. 3,09,348/- without adverting ....
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....ing additions towards disallowance of car expenses and club subscription and club expenses amounting to Rs. 3,13,664/- by holding that there is inconsistency in total amount of disallowance as per Income Tax Return when compared to amount mentioned in the Annexure to Tax Audit Report in Form No. 3CD. The assessee carried the matter in appeal before the First Appellate Authority, but could not succeeded. The Ld. CIT(A) for the reasons stated in his appellate order dated 01.09.2020, sustained the additions made by the AO towards disallowance of car expenses and club expenses by holding that the assessee did not furnish any evidence to establish that club subscription and club expenses were incurred for promoting the business of the assessee. ....
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....ake adjustment towards disallowance of expenses u/s. 143(1)(a) of the Act. As regards, disallowance of expenditure, the Ld. DR submitted that the assessee has failed to make out a case that expenditure incurred towards subscription fee paid to club and expenses of club is not personal in nature, but business expenditure incurred for the purpose of business of the assessee. 6. We have heard both the parties, perused the materials available on record and gone through orders of the authorities below. The Ld. AR for the assessee argued that adjustment made by the AO towards disallowance of subscription fee paid to club is not permissible u/s. 143(1)(a)(iv) of the Act. We find that as per Clause (iv) of Sec. 143(1)(a) of the Act, the AO can m....
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....the AO. 7. As regards disallowance of club subscription and club expenses, on perusal of details filed by the assessee including break up of club expenses, we find that the assessee has made payments to various clubs in Chennai and other places, which are in the nature of personal expenditure incurred by the partners as members of various clubs. Therefore, we are of the considered view that expenditure incurred by the assessee towards payment to clubs, is in the nature of personal expenditure and unless, the assessee demonstrate that subscription fee paid to clubs is for development of business of the assessee deduction cannot be allowed. In this case, the claim of the assessee is that expenses incurred for subscription fee paid to clubs....