Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2011 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (1) TMI 1168 - HC - Income TaxWhether Tribunal has erred in upholding the decision of the CIT(A) in restricting the addition on account of disallowance of entertainment expense even though the assessee had failed to produce any supporting evidence/papers in respect of the expenses during assessment - Tribunal in the impugned order has recorded that if the expenses are extended for the purpose of business of the assessee, the entertainment expenses are allowable under section 37 of the Act. The Tribunal, after appreciating the evidence on record found that the expenses had been incurred during the business hours at mid-sea for the employees; the nature of the business was such that workers were required to work day and night on shore – Held that:- Commissioner (Appeals) have recorded findings of fact to the effect that the expenses had, in fact, been incurred by the assessee and considering the nature of expenses incurred, restricted the same to 1/3 rd of the amount claimed - order of the Tribunal, insofar as the first ground is concerned, being based upon findings of fact does not give rise to any question of law, appeal is, therefore, dismissed Whether Tribunal is right in law and on facts in upholding the findings of the CIT(A), restricting the addition made by the Assessing Officer in respect of balances for which no confirmation/details/evidences were furnished by the assessee - activity of the assessee was mainly labour oriented and various outside agencies were engaged to support the business - Commissioner (Appeals) had discussed about each and every creditor and had found that the difference in most of the cases was due to accounting treatment or some rate difference or due to some reconciliation – Held that:- assessee had also furnished documents like copies of bills, vouchers, copies of accounts, the nature of work done, payment details and in some cases tax was also deducted at source. The Tribunal, accordingly, found that the assessee had duly discharged the onus which lay on it, no legal infirmity in the impugned order of the Tribunal, appeal is, accordingly, dismissed
|