2025 (9) TMI 444

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....03.2024 passed u/s. 147 r.w.s144B of the Act. 2. Assessee has raised following grounds/additional grounds of appeal : "1. The Ld. Assessing Officer erred in law and in fact in making addition and Ld. CIT(A)-NFAC also erred in law and in fact in confirming addition of Rs. 55,05,000/-in respect of disallowance of business expenses and other transfers without considering factual position of the same. Additional Grounds of Appeal "The appellant contends that the notice issued under section 148 by the Jurisdictional Assessing Officer (JAO) is invalid, void ab initio and without Jurisdiction, as it contravenes the mandatory faceless and automated procedure outlined in Section 151A and the e-Assessment of Income Escap....

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.... the gross revenue received during the year disallowed expenses of Rs. 55,05,000/- which comprises of three items; firstly disallowance of remuneration paid to the partners at Rs. 18.00 lakh paid in cash, disallowance of salary expenditure of Rs. 35.88 lakh which has been paid in cash; and thirdly disallowance of rent paid at Rs. 1,70 lakh. Income assessed at Rs. 89,98,220/-. 6. Aggrieved assessee preferred appeal before ld.CIT(A) but failed to succeed. 7. Now the assessee is in appeal before this Tribunal. 8. Ld. Counsel for the assessee submitted that the remuneration has been paid to the partners in cash and is well within the four corners of law. As regards the salary paid to the staff, he submitted that individual payment to e....

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.... given to the partners within the limit prescribed u/s. 40A(b)(v) of the Act and there is no dispute to this extent. Therefore, since the remuneration to partners have been given as per the partnership deed and within the limit prescribed under the income-tax Act, the genuineness of the said payment is not in doubt and further assessee being a partnership firm can make payment of remuneration to partners in cash, therefore the alleged disallowance of Rs. 18.00 lakh is hereby deleted. 12. The third limb of the disallowance is 'salary paid to the employees amounting to Rs. 35.88 lakh. Ld. Assessing Officer has himself mentioned the details of the employed at page 9 of the assessment order. Assessee has filed copy of payroll register at pag....