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ITAT upheld disallowance of Rs 2 lakhs to plug possible leakages
ITAT upheld disallowance of Rs 2 lakhs to plug possible leakages
Dr Vikaramsinha Kakasaheb paid a salary of Rs 19.5 lakhs to his doctor wife, who worked at his nursing home. A.O. observed that assessee had made higher payments to his wife as compared to other doctors. A.O. considered Rs 6 lakhs as reasonable salary and balance of Rs 13.5 lakhs as unreasonable u/s 40A(2)(b). CIT(A) sustained a disallowance of Rs 2 lakhs to plug possible leakages. ITAT upheld CIT(A)s order. - 500439
1. Dr Vikaramsinha Kakasaheb Jadhav was a neuro physician.
2. He paid a salary of Rs 19.5 lakhs to his wife Dr Sharvari Vikramsinha Jadhav.
3. A.O. observed that assessee had made higher payments to his wife as compared to other doctors and professionals who were looking after the work of the Nursing Home.
4. A.O. considered Rs 6 lakhs as reasonable salary towards rendering professional services by the wife of the assessee and balance of Rs 13.5 lakhs was considered as unreasonable u/s 40A(2)(b).
5. CIT(A) sustained a disallowance of Rs 2 lakhs to plug possible leakages.
On appeal, the ITAT held as under:
6. We find that the reasonings given by the CIT(A) for giving relief to the assessee on sound basis.
7. He has compared the services rendered by other professionals and doctors vis-à-vis the extent of the services rendered by the wife of the assessee while coming to his conclusion noted above.
8. We are in complete agreement with the reasonings of the CIT(A) and therefore decline to interfere.
