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2012 (11) TMI 286 - ITAT, AHMEDABADInterest on advances - disallowance - Held that:- As own funds of the assessee as on 31.03.2005 was of Rs.254.25 lacs as per the audited balance sheet submitted and hence, the entire such advance were given out of interest free own funds and, therefore, disallowance of interest in respect of these three interest free advances is not justified - in favour of assessee. Incremental salary - disallowance being 50% - Held that:- A clear finding is given by CIT(A) that the assessee has not discharged its onus as no justifiable reason could be explained on such a sharp rise of almost 75% in salary hence, 50% of increase in salary disallowed by the A.O. is justified - against assessee. Disallowance of depreciation - Held that:- Assessee has not furnished the purchase bills in respect of the assets on which depreciation is claimed by it. As the assessee could not establish both of these aspects that it owned the asset in question which was used by it for its business purpose disallowance of depreciation is warranted - against Assessee.
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