Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (2) TMI 552 - AT - Income TaxDeduction u/s 22 - Determination of annual value of the property - There is no dispute to the fact that the assessee is the owner of two house properties out of which one is self occupied and the other one is lying vacant - Held that: the assessee submitted that charges u/s 22 is not on the market rent but on the annual value and in the case of the property, which is not let out, the municipal value would be a proper yardstick for determining the annual value of the property - Hence,direct the Assessing Officer to adopt municipal value as basis for the purpose of determining the annual value of the property - The Assessing Officer shall give reasonable opportunity to the assessee to substantiate the municipal value of the property - The grounds raised by the assessee are accordingly allowed for statistical purpose. Ad-hoc Disallowance - business expenditure in cash - It is the well settled proposition of law that for claiming any business expenditure, the onus is always on the assessee to substantiate with evidence to the satisfaction of the Assessing Officer that such expenses are genuine and incurred wholly and exclusively for the purpose of business - Payments have been made in cash and the vouchers are self made; therefore, disallowance of 10% on ad-hoc basis is reasonable and does not call for any interference - The assessee submitted that the Assessing Officer has not pointed out any mistake, since some of the vouchers are self made and the payments have been made in cash - Hence, the order of the CIT(A) on this issue and the ground raised by the assessee is dismissed.
|