2022 (11) TMI 1032

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....ssessee is a resident individual. For the assessment year under dispute, the assessee filed his return of income on 28.09.2013 declaring income of Rs.13,50,327/-. In course of assessment proceeding, the Assessing Officer, while verifying the return of income and financial statement found that the assessee is engaged in the business of providing placement and contract labour services and providing manpower solutions as per requirement. On perusing the Audit Report, he found that the assessee has claimed deduction of Rs.27,26,550/-, being bonus paid to employees. Being of the view that such payment is in violation of provision contained under section 36(1)(ii) of the Act, the Assessing Officer disallowed the amount. The disallowance so made, ....

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....d Commissioner (Appeals), it is observed, though, the assessee contended that it is a mistake committed by the Auditor in mentioning the deduction claimed at column no. 16(a) of the Audit Report instead of clause 21(b). However, learned Commissioner (Appeals) declined to accept such claim of the assessee on the reasoning that the assessee failed to obtain a certificate from the Auditor acknowledging the mistake. However, before me, the assessee has furnished certificate dated 15th February, 2019 issued by the same Auditor acknowledging the mistake in reporting the bonus paid to the employee. Of course, the assessee has filed the aforesaid document as additional evidence. 2.5 Be that as it may, the grievance of learned Commissioner (Appeals....

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....f Rs.4,56,000/-. Therefore, he called upon the assessee to prove the genuineness of such loan transaction. Alleging that the assessee failed to furnish the information called for to prove the genuineness of the loan transaction, the Assessing Officer added back the amount of Rs.4,56,000/- to the income of the assessee. Though, the assessee contested the addition, however, the addition was sustained by learned Commissioner (Appeals). 3.2 I have considered rival submissions and perused the materials on record. As discussed earlier, the Assessing Officer made the addition alleging that the assessee did not furnish the required information to prove the loan transaction. However, it is observed, before the first appellate authority, the assesse....