Dear All,
One of my client's case was selected for scrutiny. The Assessee is an individual earning business income. I have following queries:
1. The Assessee has paid commission to HUF (in which the assessee is the Karta) and duly deducted the TDS. But the AO has disallowed the commission amt. Are there any case laws in which such payments were NOT Disallowed??
2. In the same Assessment year, the Assessee had made a business cum family trip. He debited his business expense of Rs. 8 Lakh to Profit and Loss Account while debited the Drawings Account by Rs. 4 Lakhs for family expenses. This was also substantiated by the travel agent's letter to the AO. But the AO disallowed full 8 Lakhs amount. Can the AO do so? Are there any case laws which can help us during appeal??
Best Wishes,
Kunal Mangal
CAclubindia
