Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (9) TMI 1239 - ITAT DELHIDisallowance of expenses as personal in nature - HELD THAT:- the company cannot have any personal expenditure as it is a distinct assessable entity is per definition of person u/s 2 (31) of the act. Such is also the mandate of the decision of Honourable Gujarat High Court in [2001 (7) TMI 70 - GUJARAT HIGH COURT] -CIT-A has also followed the same. In view of this we do not find any infirmity in the order of the learned CIT-A in deleting the disallowance is of expenses. Accordingly ground number 16 of the appeal is dismissed. Addition on account of carbon credits - HELD THAT:- As decided in case of Andhra Pradesh High Court [2014 (6) TMI 82 - ANDHRA PRADESH HIGH COURT] deleting the addition on account of Carbon credit receipt holding the same to be a capital receipt. Accordingly ground as dismissed. Disallowance of legal and professional expenses paid - AO disallowed the above expenditure holding that the assessee has failed to prove the business expediency and further as there is no clause in the agreement which describes the nature of services rendered by that service provider - HELD THAT:- CIT-A following the decision of the honourable Delhi High Court [2001 (9) TMI 48 - DELHI HIGH COURT] allowed the claim of the assessee. He further held that the term commercial expediency is to be judged from the angle of the assessee/businessman. With respect to the provision of the services he also held that services have been availed by the assessee in earlier years also. Accordingly he deleted the disallowance. DR could not controvert the decision of the learned and CIT-A. We also find that when the expenditure has been allowed to the assessee in earlier year, no new facts are coming into the knowledge of the assessing officer which proves otherwise, the agreement supports the payment, the recipient was providing services to the company, he was also an employee of the group concern and the services of that gentleman availed by the assessee during the year the disallowance has rightly been deleted.
|