The Income Tax Appellate Tribunal (ITAT), Chennai bench upheld the disallowance made by the Income Tax Department, stating that the assessee failed to produce supporting documents for the helper allowance claimed as a deduction under Section 10(14)(i) of the Income Tax Act, 1961.
Thanushkodi Narayanan, the assessee and Director of Annai Builders Real Estate Pvt. Ltd., filed her original return of income under Section 139(4) of the Act for the relevant assessment year 2012-13.
The assessee filed the return of income under Section 153A of the Income Tax Act on 17.08.2019 for the assessment year 2017-18, claiming allowances of Rs.4,80,000/- for helper allowance. This claim was not present in the original return filed on 12.08.2018.
The Assessing Officer (AO) noted that no additional income from salary was offered in the return filed under Section 153A of the Act. During the special audit u/s.142(2A) of the Act, no supporting documents were submitted. Consequently, the AO disallowed the sum of Rs.5,14,200/-.
Aggrieved by the order, the assessee filed an appeal before the tribunal, which was dismissed. The assessee then filed another appeal.
B. Ramakrishnan, the assessee representative, argued that the assessee had expended the money, as claimed in the return filed under Section 153(3A) of the Income Tax Act. N.B. Som, Counsel for Revenue, supported the observations of the Commissioner (Appeals).
The tribunal observed that the assessee could not provide any evidence or file documents related to the claim of the helper allowance paid to them.
After reviewing the facts and records, the two-member bench of Rajesh Kumar (Accountant member) and Mahavir Singh (Vice President) concluded that the assessee failed to produce supporting documents for the expenditure on the helper allowance claimed as a deduction under Section 10(14)(i) of the Income Tax Act, 1961.
Consequently, the bench dismissed the appeal of the assessee.
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