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2012 (11) TMI 805 - AT - Income TaxDisallowance u/s.40(a)(ia) - CIT(A) deleted the addition - Held that:- The CIT(A) has recorded that the assessee has incurred certain expenses for advertisement and publicity, which have been reimbursed by the principal company and that no part of the expenses have been claimed by the appellant in its P&L account, and therefore the provisions of section 40(a)(ia) are not applicable and no disallowance could be made while computing the income of the appellant - as revenue unable to produce any fatcs to contrary no disallowance is warranted - in favour of assessee. Disallowance on account of foreign travel expenses as non-business purposes - CIT(A) deleted the addition - Held that:- The assessee also could not justify how the travelling by the directors would have enhanced or bought value to its own business and these expenses have any relevance to the business of the assessee and in reply to a specific question from the Bench as to the date-wise details of foreign visit by two directors of the assessee-company, the same could not be produced on behalf of the assessee. Onus is on the assessee to prove the business purpose of the expenses to claim deduction, as the same is out of its taxable income, which in this case, the assessee has failed to discharge. The assessee was expected atleast to maintain a date-wise detailed programme of the directors during their foreign traveling as letters of the two directors during the relevant period addressed to the assessee-company mentioning the places where they have visited does not inspire confidence - in favour of Revenue. Disallowance u/s.40A(2)(b) - CIT (A) restricted the addition to Rs.2,00,000/- as against Rs.6,00,000/- - Held that:- CIT(A) after considering entire facts and circumstances of the case and qualification of the lady directors and their contribution to the assessee-company has allowed salary at Rs.2 lakhs per annum each of the lady directors and disallowance was restricted to Rs.2 lakhs - no interference in his order on this issue is called for - against Revenue.
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