Document Fragment View
Fragment Information
Showing contexts for: turnover decrease in Dcit, New Delhi vs M/S. Kl Concast Pvt. Ltd., Delhi on 7 June, 2018Matching Fragments
PER R.S. SYAL, VP:
This appeal by the Revenue is directed against the order passed by the CIT(A) on 26.11.2015 in relation to assessment year 2012-13.
2. The only ground raised in this appeal is against the deletion of addition of Rs. 39,60,000/-. Briefly stated facts of the case are that the assessee is engaged in the business of manufacturing and trading of billets, shapes, sections and other products of steel. During the course of assessment proceedings, it was observed by the Assessing Officer that salary and bonus amounting to Rs.77,4,000/- was paid to three directors. He held such a payment as excessive in view of decrease in the ratio of net profit to turnover. He restricted the deduction to the amount of salary and bonus as allowed by him in the financial year relating to the assessment year 2009-10. Remaining amount of Rs.39,60,000/-, comprising of salary of Rs. 33,00,000/- and bonus of Rs.6.60 lac was disallowed in terms of section 40A(2)(b). The learned CIT(A) deleted the addition, against which the Revenue has come up in the appeal before the Tribunal.