Case Law Details
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-company, for family functions and family get-together. No evidences were produced to demonstrate that flat was used for business purposes. In fact in the statement recorded u/s 132(4) of the Act, Shri Atul Shah admitted that the said flat was exclusively used by the family members of Shri Atul Shah for family functions and get-together. In the orders of the A.O and the ld. CIT(A) it has been clearly brought out that this flat was never used for any business purposes of the assessee-company and whatever evidences have been produced in the form of leave and licence agreement, minutes of Board meeting, etc. fall in the category of self-serving documents. Even before us also, the ld. A.R for the assessee could not substantiate through evidence as to how the flat was used for the business purpose. In fact, he was unable to refute the facts placed on record. Therefore, undoubtedly the said flat was never used for business purposes of the assessee-company. We do not find any reason to interfere with the findings of the ld. CIT(A) and the same is upheld. The grounds of appeal are dismissed.
FULL TEXT OF THE ORDER OF ITAT PUNE
This appeal preferred by the assessee emanates from order of ld. CIT(A)-1 1, Pune, dated 12-08-2022 for A.Y. 2018-19, on the following grounds:
“On the facts and circumstances of the case and in law,
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