Income Tax Officer, Ward-10(1), Delhi Vs. Goverdhan Transport Company Pvt. Ltd

Parties Involved

Facts Summary

The appeal in ITA No.4976/Del/2024 for AY 2016-17, arises out of the order of the ld National Faceless Appeal Centre (NFAC), Delhi in Appeal No. ITBA/NFAC/S/250/2024-25/1068175548(1) dated 30.08.2024 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 dated 27.12.2018 by the Assessing Officer, ADCIT, Circle-10(1), New Delhi. The return of income for the assessment year 2016-17 was filed by the Assessee Company on 16-10-2016 declaring total income of Rs 34,87,360/-. The company is into the business of transport for running public carriage buses under public-private partnership with the state government. The Assessee was directed to furnish the details of executive remuneration expenses of Rs 6,98,64,000/- by the Learned AO vide notice under section 142(1) of the Act. The Assessee furnished the details before the Learned AO vide letter dated 12-12-2018, stating that the monthly executive remuneration was Rs 58,22,000 and the total sum debited thereon was Rs 6,98,64,000 (58,22,000 X 12 months). The Assessee also gave the complete list of employees to whom the executive remuneration was paid. It comprised of 48 employees to whom monthly remuneration was paid. The tax deducted at source on the said remuneration details were also duly furnished by the Assessee in respect of each of those employees in a tabular form. The learned AO again sought for the details of executive remuneration asking for the details of PAN of each of the employees together with the…

Legal Issues

• 1. Whether the Learned CIT(A) was justified in deleting the disallowance of executive remuneration under section 37(1) of the Act in the sum of Rs 6,98,64,000 in the facts and circumstances of the instant case.

Judgment Outcome

Decided in favour of Revenue.

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