2019 (11) TMI 1802

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.... 2. That the Ld. CIT. prejudicially disallowed salary of Rs 7,20,000/- u/s 40A(2)(b) of the Income Tax Act,1961. 3. That the Ld. CIT was not justified while disallowing interest of C.L.Mehra & Sons HUF, Mr. C.L.Mehra, Chand '"Mehra and Vinay Mehra u/s 37 read with sec 40A(2)(b) 4. That the Ld CIT unfairly applied the provisions of Section 14A of the I.T. Act 1961 and added sum of Rs. 26,21,773/- while the same section was not applicable. He also overruled the Hohab'le Delhi High Court Judgment for which Ld. CIT was bound to comply and obey. 5. That That the assessee reserves the right to add, delete , alter and modify to the above grounds of appeal. 2. Briefly stated facts of the case at that the....

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....of Sh. C. L. Mehra (Rs. 3,60,000/-), Lata Rani Mehra ( Rs. 3,60,000/-), Namita Mehra (Rs. 3,60,000/-) totalling Rs. 7, 20,000/-and deleted the disallowance in respect of the balance persons. 4.2 Before us, the Ld. counsel of the assessee fairly accepted that in preceding assessment year 2011-12, the Tribunal has upheld the disallowance under section 40A(2)(b) of the Act, however, he submitted that in view of the experience of the persons in the industry and services rendered, the expenses might be allowed in the hands of the assessee. 4.3 The ld. DR, on the other hand, relied on the order of the lower authorities. 4.4 We have heard the rival submission and perused the relevant material on record. The Assessing Officer made disallow....

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....d and the ground No. 2 of the appeal of the assessee is dismissed. 5. The ground No. 3 of the appeal relates to disallowance of interest to M/s. CL Mehra & sons (HUF), Mr C L Mehra, Mr. Chand Mehra and Mr. Vinay Mehra u/s 37 read with section 40A(2)(b) of the Act. 5.1 We have heard rival submission of the parties on the issue in dispute. The Ld. counsel of the assessee reiterated the arguments which were made before the lower authorities, particularly in relation to the trademark of "Mehrasons" owned by Sh. CL Mehra. The learned CIT(A) following the finding of his predecessor in assessment year 2011-12 sustained the disallowance of interest in respect of Sh. CL Mehra, M/s. Mehra and Sons HUF, Mr. Chand Mehra and Mr. Vinay Mehra. The T....