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2011 (2) TMI 546 - HC - Income TaxSecurity expenses - The expenditure on account of security was paid to Haryana Government, Police Department for providing security to the working directors of the company and this could not involve element of personal nature or the expenditure could not be said to be of capital nature but was an expenditure wholly and exclusively incurred for the business purposes - Thus, allowed u/s 37(1) of the I.T. Act and disallowance is accordingly, deleted Undervaluation of Stock - The nature of entry tax or LADT being as such it has nothing to do with the goods, it cannot become part of stock as it did not relate to it and hence, was not worked out by the appellant company or disclosed in the books of account - Hence, section 145A is not applicable - As per the case of M/s Lakhani India Ltd. in appeal No. 36/06-07 vide order dated 29.03.2007 for the assessment year 2003-04. Following this order, the addition on a/c of undervaluation of closing stock on the basis of effecting entry tax is, therefore, deleted. Disallowance on account of use of car - The disallowance on account of personal use of car was also deleted by holding that there was no element of personal nature in such expenses and it could only be added in the hands of the directors alone - Therefore, the disallowance out of car expenses worked out by the AO, is deleted.
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