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2012 (7) TMI 271 - AT - Income TaxDisallowance of conveyance expenses, staff welfare expenses, sundry expenses and traveling expenses - Held that:- As immediately preceding assessment year 2004-2005 AO disallowed 10% of above mentioned expenses and that too for a year prior to that i.e. assessment year 2003-2004, and the assessee admitted that he did not file any appeal against the disallowance made by the A.O. in the immediately preceding year - thus, considering the facts that the assessee itself admitted, that certain expenses were not supported by third party vouchers, disallowance is warranted - decided against assessee. Disallowance being 20% out of cash expenses incurred on behalf of customers - Held that:- As assessee had issued Debit notes to its principal companies for Rs.5.36 crore towards service charges and commission income to the tune of Rs.3.07 crore and reimbursement of expenses worth Rs.2.29 crore. The Assessing Officer deduced the figure of Rs.5.36 crore from the accounts of the principals appearing in the ledger account of the assessee, this amply proves that the amounts were promptly displayed in the books of account - bedrock for making any addition u/s 69C is that there must have been some expenditure incurred by the assessee, the source of which is not disclosed is not proved here - incurring of such expenses by the assessee in cash etc. calling for disallowance cannot be warranted - When the principal companies have reimbursed the expenditure to the tune of `2.29 crore there cannot be any presumption that the assessee must have saved some money out of the same - decided against revenue.
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