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2014 (1) TMI 1368 - ITAT MUMBAIAdhoc disallowance of expenditure incurred in cash - Held that:- The details furnished by the assessee before the Assessing Officer/ CIT (A) are not open to third party scrutiny and they have not sustained to severe scrutiny of the Revenue Authorities - The adhoc disallowance made by CIT(A) was justified - Partly allowed in favour of assessee. Disallowance out of expenditure like bank charges, office maintenance, telephone expenses, staff salary, depreciation - Held that:- These are the expenses to be taken to the work-in-progress as ‘expenses of the business’ to be carried forward till the projects are complete as appellant is following the project completion method - These expenses in work-in-progress can be considered at the time when the projects are complete and revenue is recognized - The allowance of expenditure is deferred because of the method followed by the appellant on completion of project only - Assessee should not be allowed to deviate from this method without there being no specific and sustainable reason - Decided against assessee. Non-deduction of TDS - Held that:- As the assessee is following the project completion method, the expenses in work-in-progress can be considered at the time when the projects are complete and revenue is recognized -The impugned expenses on which no TDS is made cannot be disallowed in this year as it is not charged in the P&L Account - The claim is to be deferred till the revenue recognized in the year in which the project is completed - Decided against assessee.
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