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2013 (4) TMI 368 - MADRAS HIGH COURTAddition in income - Maistries Due – Revenue expenditure matching concept - Held that - As it is explained by the assessee that they have shown in the books of account as work-in-progress and especially under the circumstances of following the mercantile system of accounting, we find force in the submission made by the learned counsel appearing for the assessee. Accordingly, the first issue is answered in favour of the assessee and against the Revenue. As far as the next issue, namely, absence of materials to prove the expenses, is concerned the A.O has not found anywhere in the assessment order that the expenses made by the assessee towards the Maistry dues is not supported by any material documents. It is only when the matter was remitted back from the first Appellate Authority to the A.O during the pendency of the appeal, the assessee was not in a position to produce those vouchers, reason is that the vouchers were damaged during 2005 floods. - Decided in favor of assessee.
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