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2012 (11) TMI 91 - ITAT, CHANDIGARHValuation of closing stock – enhancement of value of land - Assessing Officer while calculating the value of closing stock added the amount of External Development Charges (EDC) and conversion charges to the cost of land at Kotkapura. - assessee contended that, it is well accepted practice that the statutory fee is not part of development expenses. - held that:- matter remanded back to AO for fresh decision. Valuation of closing stock - Assessing Officer required the assessee to show cause as to why the valuation of land should not be taken on the basis of value of opening stock. The only reply given by the assessee was that the closing stock of the land was made as per accounting standard. - assessee had submitted a detailed submissions before the CIT(A). It seems that the CIT(A) has not taken into consideration the detailed submissions made by the assessee before him. The CIT(A) has also not given any reason as to why he has ignored the submissions of the assessee. - matter remanded to AO Disallowance @ 20% salary to director of the company - provisions of section 40A(3) - Cash payment - assessee submitted that the provisions of sect ion 40A(3) are not attracted in this case as it is protected by clause (d) to Rule 6DD of Income Tax Rules, 1962 – Held that:- Relevant entries in respect of salary expenses in the books of account of the assessee are not available on record. In the absence of such details, we could not appreciate the contention of Shri Ajay Jain, Ld. Counsel for the assessee – matter remanded to Assessing Officer Disallowance of telephone expenses – assessee submitted that telephone bills in the name of the company and the same were incurred for business purpose – Held that:- assessee submit ted that the assessee company has taken corporate connection in its own name and has given telephone connections to various employees and directors for business purposes only - service provider has issued the bill in the name of the company and all payments have been made by the company for business purposes only and it is only technical breach that at the time of leaving of employee and joining of new employee the change in name of user was not got registered in the records of telecom service provider - Assessing Officer has wrongly disallowed the expenses without appreciating the facts of the present case - appeal is allowed for statistical purposes
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