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2014 (9) TMI 493 - AT - Income TaxCommission payment disallowed – Held that:- The assessee started first year of his business in mobile service/telephone - He did not have any experience in the line of business and also was not conversant to the income tax proceeding - The commission was received from Tata Tele Services Ltd. after TDS, therefore, receipts cannot be suppressed - there is a lapse on part of the assessee to maintain the required evidence for claiming the expenses under the law - The AO also estimated income on the basis of non partial attendance of recipient of commission - he has accepted the income, which was received through account payee cheques after deducting TDS and also number of telephone installed are also available on record from the services rendered by the assessee - 80% commission receipt as business expenses and remaining 20% of commission receipt as income including returned income is allowed – Decided partly in favour of assessee. Various other expenses disallowed – Held that:- CIT(A) had restricted this disallowance being 50% of total expenses as reasonable on the ground that the assessee was not having proper voucher supporting details and expenses were incurred in cash only –it was not fully verifiable under the given circumstances – the assessee had closed down his business within four months, thereafter he lost his connection with all the supplier of servicer for which he made the payment, a reasonable amount may please be confirmed – the disallowance at ₹ 25,000/- is justifiable – Decided partly in favour of assessee.
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