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Income Tax Appellate Tribunal, “D” BENCH, MUMBAI
Before: S/SHRI B.R.BASKARAN & SHRI SANDEEP GOSAIN
PER B.R.BASKARAN,AM:
The assessee has filed this appeal challenging the order dated 17.1.2012 passed by the ld. CIT(A)-13, Mumbai and it relates to the assessment year 2007-08. 2. The grounds urged by the assessee relate to the following issues : a) Disallowance made under section 40A(2)(b) of the Act; b) Addition made u/s 50C of the Act.
2
The assessee company is engaged in the business of import and sale of rubber product and rubber chemicals. During the course of assessment proceedings, the AO noticed that the assessee has paid salary of Rs.1,63,500/- to its Director named as Smt. Samina Mazhar Vohra. The AO noticed that the AO, in the immediately preceding year has restricted the remuneration paid to Smt.Samina Mazhar Vohra to Rs.96,380/- by invoking the provisions of sec. 40A(2)(a) of the Act and accordingly disallowed the balance amount of remuneration. Accordingly, the AO restricted the salary of Smt.Samina Mazhar Vohra to Rs.96,380/- in the instant year also, which resulted in a disallowance to Rs.67,120/- u/s 40A(2)(b) of the Act.
The AO also noticed that the assessee has sold a shop located at Vashi for a sum of Rs.5 lakhs and has offered Short Term Capital Gains of Rs.2,91,619/-. The AO noticed that the sale agreement was not registered and hence the AO called for Stamp Duty Valuation from the Sub-