Disallowance Based on Wrong Person’s Statement Cannot Stand: Delhi ITAT

Flint Power Tools (P) Ltd. Vs ACIT (ITAT Delhi) Disallowance Based on Wrong Person’s Statement Cannot Stand: Delhi ITAT Deletes Sec.40A(2)(b) Addition on Director’s Salary Assessee challenged disallowance of Rs.17,50,000/- made u/s 40A(2)(b) towards salary paid to its Director, Smt. Sonia Singla. AO claimed the salary was not genuine & relied on a statement reproduced in the assessment order as the “statement of Sonia Singla”. Tribunal noted from the reproduced text and the image on page 3 that the statement actually belonged to Smt. Priti Singla, not Sonia Singla. Tribunal held th...