TaxTMI 
TaxTMI 
2023 (10) TMI 19
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....r the assessment year 2015-16. 2. The ground taken by the assessee is as under: Whether on the facts and in the circumstances of the case, learned lower authorities has grossly erred in law and on facts in making and confirming the following additions: i) Interest paid on loan: Rs. 27,500 ii) Commission paid to Shri Rakesh Tiwari. Rs. 2,10,000 iii) Brokerage paid to Shri Sumit Chitkara for arranging property on rent. Rs. 40,500 iv) Professional charges paid to Shri Rajiv Dutta. Rs. 82,000 -------------- Total Rs, 3,60,000 2.1 Assessee has also raised additional ground vide application dated 25.05.2022 which is as under: "Whether the learned lower authorities has grossly erred in law and on fa....
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....d counsel also referred to copy of confirmation and TDS certificate in Form 16A to demonstrate that TDS was done on this interest payment. He also referred to the bank statement to substantiate that the transaction of loan as well as interest was made by cheque through banking channel. It was also submitted that no addition has been made in respect of the loan amount which was taken during the year. Thus, casual and baseless observation by the authorities below that assessee could not offer any tenable explanation is de void of any merit. The addition so made is ought to be deleted. 5.1 In respect of addition made towards commission paid to Shri Rakesh Tiwari amounting to Rs. 2,10,000. Learned counsel referred to the written submission mad....
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....ersity. He is working with the assessee since 2011. Prior to this, he had worked with a company TTK Prestige Ltd. from 1991 to 2011 which deals in utensils and pressure cookers, similar to the line of business in which the assessee is also engaged. Shri Rajiv Dutta out of his qualification and experience assisted the assessee in drawing policies for sales promotions for the assessee. Further, learned counsel referred to various supporting and corroborative documents including reply furnished before the learned Assessing Officer, confirmation letter, forms 16A for the TDS done, bank statement for the payment made by cheque and copy of ITR of Shri Rajiv Dutta who had offered the same in his income. He thus claimed that this is a bona fide leg....
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....r, we find that assessee had substantiated the claim of its expense with corroborative documentary evidence which are justified taking into account the line of business in which it is engaged. We note from the order of learned Assessing Officer that nothing specific has been pointed out to justify the disallowances/additions made except for a general statement that claim of the assessee is not tenable. We have gone through the documents referred by the learned counsel as stated above and find force in the submissions so made. The expenses claimed by the assessee as stated above are legitimate business expenses which are allowable under Section 37(1) of the Act (depreciation on car under Section 32 of the Act). The conditions prescribed unde....