Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2022 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (1) TMI 352 - ORISSA HIGH COURTDisallowance of 5% of the expenses claimed under the head "marketing expenses and provisions" - HELD THAT:- There is no reason given for restricting the disallowance to 5% of the expenses claimed and thereby arriving at the figure for the AY in question, except stating that the disallowance sustained by CIT (A) is "on the lower side". ITAT could have followed the approach for the AY 1993-94 where the disallowance was restricted to around 1.5% of the expenses claimed by the Assessee, and which was upheld by the ITAT itself. Having considered the entire matter, the Court is of the view that the Income Tax liability of the Appellant as a result of the disallowance should be restricted to 50% of liability arising from the impugned order of the ITAT. It is ordered accordingly. With the Appellant assessee already having paid 50% of the said liability pursuant to the interim order passed by this Court, no further amount will be required to be paid by the Assessee. The impugned order of the ITAT stands modified in the above terms and the question of law framed is answered accordingly.
|