Anubhav Sharma ORDER
Anubhav Sharma, Member (J)
1. The appeal has been filed by the Assessee against order dated 09.09.2020 in appeal no. CIT(A), Delhi-20/10485/2019-20 in assessment year 2011-12 passed by Commissioner of Income Tax (Appeals)-20, New Delhi (hereinafter referred to as the First Appellate Authority in short 'Ld. F.A.A.') in regard to the appeal before it, arising out of assessment order dated 10.12.2019 u/s. 154 of the Income Tax Act, 1961 passed by DCIT, CPC, Bangalore (hereinafter referred to as the Assessing Officer 'AO').
2. The facts in brief are the Assessee is a chartered accountancy firm engaged in providing services in the field of Assurance, Risk Advisory, Tax Advisory, Corporate Advisory and Outsourcing. During the relevant assessment year, the appellant had filed its return of income on 29.10.2017 at a total income of Rs. 2,08,91,050/-. The Ld. AO vide communication dated 17.07.2018 asked the appellant to file a response against the proposed adjustment of Rs. 1,11,216/-, being the amount of club expenditure reported in tax audit report. Against such communication, the appellant filed a response on 13.08.2018. The said response was not considered and an intimation under section 143(1) was passed on 04.02.2019 whereby the said amount was disallowed, and the total income was computed at Rs. 2,10,02,263/-. The appellant, thereafter, filed a rectification against the said intimation. However, vide rectification order, dated 14.05.2019, under section 154 of the Act the disallowances were made, thereby assessing the total income at Rs. 2,10,88,870/- and raising a demand of Rs. 1,11,850/-. The appellant filed an appeal against the rectification order under section 154 of the Act dated 14.5.2019 on 3.6.2019. Subsequent to the above rectification order, the appellant received another rectification order dated 10.12.2019 vide. The said rectification was as a suo-moto rectification done by the Department for which no showcase notice was given to the appellant.
3. Ld. CIT(A) had dismissed the appeal while confirming the disallowance of Rs. 4280/-. The assessee is in appeal raising following grounds:-
"(a) That the learned CIT(A) has erred on facts and in law in sustaining the disallowance of club expenditure amounting to Rs. 40,280/- stating that the same is based upon the comments made by the auditor in the audit report.
(b) That in this connection, the learned CIT(A) has not given credence to the fact that the same constitutes annual membership fees which was reported in clause 21(a) of Form 3 CD for disclosure purpose only in accordance with the Guidance Note on Tax Audit under section 44AB of the Income tax Act 1961 issued by the Institute of Chartered Accountants of India.
(c) That further in this connection, the learned CIT(A) has not given credence to the fact that the said disclosure neither amounts to any incorrect claim as per section 143(1)(a)(ii) of the Act and nor can it be considered as disallowance of expenditure indicated in the audit report but not taken into account in computing the total income in the return as per section 143(1)(a)(iv) of the Act.
2. That the learned CIT(A) has erred in not adjudicating the ground related to not allowing the TDS credit of Rs. 2,57,252 by the learned Assessing Officer, which was rightly claimed by the appellant and which is also duly reflecting in Form 26AS.
3. The Appellant craves to leave, add, amend, modify, delete and/or change all or any of the grounds on/or before the date of hearing. "
4. Heard and perused the record.
5. At the time of arguments, Ld. AR for the assessee submitted that the asses........