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2012 (10) TMI 282 - AT - Income TaxDis-allowance of expenses on adhoc basis without pinpointing any item which is of personal in nature - vehicle expenses, motor car expenses, depreciation on motor car - Held that:- Assessee failed to establish that the entire vehicle expenses and motor car expenses were incurred wholly and exclusively for business purpose. The possibility of the assessee for use of non business purposes cannot be ruled out. However, dis-allowance sustained in appeal by CIT(A) is on a higher side, and dis-allowance is restricted to 10% of the claim. Addition made on ground of low household expenses - Held that:- The undisputed fact is that the A.O. has made an estimation of household expenses, which is not based on any evidence or material on record. In view of these circumstances we direct the A.O. to delete the addition. Dis-allowances on account of shortage in material - Held that:- It is evident that assessee has submitted evidences before the A.O. that the vendor does not entertain the claim of the assessee whether the shortage is less than 100 kg. This is also a fact that the assessee has to buy the material in bulk and sell it in retail. It is not denied that the shortage/ deficit in the case of the assessee is less than 0.5% of the total purchases. It is also not denied that the explanation of the assessee that the shortage/deficit has been accepted in the earlier years in the order passed u/s. 143(3). There cannot be any thumb rule that no shortage will be allowable to the assessee - A.O. is directed to delete the addition - Decided partly in favor of assessee.
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