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2012 (9) TMI 1012 - AT - Income TaxAddition on account of travelling expenses - Held that:- We find that the addition on account of travelling expenses was totally based on surmises and conjectures. Assessing Officer has not brought on record any cogent basis as to why this expenditure was to be disallowed. It is not the case that expenditure was considered to be bogus or any shortcoming in the vouchers in this regard was observed by the Revenue. Under the circumstances, we hold that estimated addition without any basis cannot be sustained. In this regard, the case law relied upon by the assessee in the case of the ITO vs. Lake Palace Hotels and Motels (P) Ltd [1981 (11) TMI 77 - ITAT CALCUTTA-A] is germane. In this case, it was held that the travelling expenses and salary expenses, addition made on estimate basis cannot be justified. Moreover, disallowance is also not justified merely on the ground that similar disallowance was made in the previous year. Accordingly, in the background of the aforesaid discussions and precedent, we hold that the addition on account of travelling expenses is liable to be deleted and hence, we set aside the orders of the authorities below and decided the issue in favour of the assessee.
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