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2022 (9) TMI 691 - ITAT VARANASIDisallowance of tour and travel expenses - Addition made as assessee merely submitted ledger account of traveling and conveyance expenses before the AO during the course of assessment proceedings, despite being asked by the AO to submit complete details and justification for the travel and conveyance expenses - HELD THAT:- Assessee has not provided details of expenses and justification of having incurred those expenses wholly and exclusively for the purposes of business of the assessee, satisfying mandate of Section 37(1) and in the absence thereof, the authorities were left with no alternative but to proceed to make disallowance towards personal usage for benefit of Directors /employees being claimed as business expenses, which obviously involves some guess work and in our view more than fair and reasonable guess work was made by the authorities below Merely Rs. 10 lac of expenses were disallowed by the AO out of total travel and conveyance expenses of Rs. 1.90 crores incurred by the assessee during the year under consideration, as against total travelling and conveyance expenses of Rs. 1.20 crores incurred in the immediately preceding year also keeping in view increase in business receipts during the year under consideration, more so no details were forthcoming from the assessee to substantiate these travel and conveyance expenses and justify that these expenses were incurred wholly and exclusively for the purposes of business satisfying the mandate of Section 37(1) - keeping in view entire factual matrix of the case, the appeal filed by the assessee lacks merit - Decided against assessee.
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