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2014 (6) TMI 887 - AT - Income TaxDisallowance of travelling expenses and sundry expenses - Held that:- disallowance of 20 per cent. on ad hoc basis out of the claim of travelling expenses was on the higher side considering the details of expenses submitted by the assessee and the annual turnover of ₹ 30.13 crores of the business for the current assessment year. In over all view of the facts and circumstances of the case, the disallowance under this head is ordered to be reduced to 5 per cent. of the expenses claimed. Commissioner of Income-tax (Appeals) himself has noted in the impugned order that the increase in this expenditure was mainly on account of photo shoot expenses and water proofing charges for the work carried out in one of the shops. Considering the nature of the business of designer jewellery and maintenance of showroom for the said purpose, the said expenditure was for the purpose of the business of the assessee and does not call for any disallowance. Accordingly the disallowance on account of sundry expenses is hereby ordered to be deleted.- Decided partly in favour of assessee.
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