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2012 (5) TMI 417 - AT - Income TaxDisallowance of printing and Stationery expenses of Rs. 1,00,000 - It is settled that a businessman is the best judge to take care of its own interest and to take decisions and the AO is not supposed to intervene therein nor he can replace the assessee - it is submitted that the appellant has maintained complete books of account consisting of cash book, ledger and journal. All the purchases and sales are fully vouched. The accounts are audited under s. 44AB of the Act - Held that: assessee has been able to explain the nature of expenses and also explained as to why some expenses are supported by internal vouchers - Decided in favor of the assessee Regarding interest on interest-free loans at 6 per cent instead of 12 per cent - As the assessee has incurred interest on the bank overdrafts and part of such interest-bearing funds were not utilized for business purposes therefore, the assessee was required to explain why interest may not be disallowed to the extent of interest incurred on making interest-free advances - Held that: there was. no borrowing made to meet financial requirement and on the contrary these were assessee's own funds which have been utilized even for the subjected advances - The issue stands covered by our order in the case of the assessee for earlier assessment year - Decided in favor of the assessee
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