Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (5) TMI 1136 - AT - Income TaxDisallowance of administrative expenses - Held that:- In the present case, it is an admitted fact that the assessee is a public limited company, so there cannot be a personal use on account of telephone and trunk call expenses. In the instant case, the Assessing Officer did not point out any instance where the expenses relating to travelling and conveyance were unreasonable or excessive or proved to be bogus. The Assessing Officer himself accepted 90% of the rental expenses as allowable and merely on the basis that there was an increase in the rental expenses as compared to earlier years it cannot lead to the disallowance of expenses in part. In the present case, the Assessing Officer disallowed the membership and subscription expenses merely on this basis that the proper vouchers had not been maintained but no defect was pointed out and no specific instance of claim being bogus and unreasonable or excessive had been pointed out, therefore, disallowance made by the Assessing Officer was rightly deleted by the Ld. CIT(A). We do not see any infirmity in the order of the Ld. CIT(A) on this issue. - Decided against revenue Disallowance of repairs and maintenance of plant and machinery - Held that:- In the present case, it is an admitted fact that turnover of the assessee increased in comparison to the earlier years and the Assessing Officer had not pointed out any specific instance of bogus, unreasonable or excessive expenses relating to repairs and maintenance of plant and machinery. He had also not pointed out that the expenses were not incurred for business purposes or those were personal in nature, therefore, the disallowance made on the basis of surmises and conjecture is not tenable and the Ld. CIT(A) rightly deleted the same - Decided against revenue Disallowance of manufacturing expenses - Held that:- Assessing Officer made the adhoc disallowance without quantifying any of the expenses, which was not incurred for the business purposes. The Assessing Officer also not pointed out which of the item was not supported by proper bills and vouchers, therefore, the disallowance was made only on the basis of presumption, which is not tenable and the Ld. CIT(A) was justified in deleting the same. - Decided against revenue Disallowance of selling expenses - Held that:- It appears that the Assessing Officer made an adhoc disallowance only on this basis that the expenses were more in the year under consideration as compared to the earlier years. However, he ignored this vital fact that the main expenses amounting to ₹ 18.25 lacs out of total expenses of ₹ 26.60 lacs under this head were on account of royalty and the Assessing Officer did not point out any specific instance where the expenses were not incurred for the business purpose. Therefore, the disallowance made by the Assessing Officer was only on the basis of presumption, which is not tenable and the Ld. CIT(A) rightly deleted the same. - Decided against revenue
|