Rent of Flat not Used for Business Purpose is not allowable

Chandukaka Saraf & Sons P. Ltd. Vs ACIT (ITAT Pune)  In this case, the assessee had debited in its P & L a/c an amount of Rs. 6,30,000/- as rent for a flat at Camp area, Pune. The A.O noticed that the rent for the said flat was even disallowed in the earlier assessment years for the fact that the said flat was not used for business purposes of the assessee­ There was a search conducted on the assessee-company on 27-11- 2014 and during the search operation, it was found that the flat in question was exclusively used by the family members of Shri Atul Shah, Director of the assessee-com...