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2012 (11) TMI 841 - ITAT, AMRITSARDisallowance of Business Promotion expenses – Held that:- Assessee had incurred expenses for the purpose of business and to maintain cordial relations with the suppliers and other persons and to maintain good business reputation and to meet the market competition. Also there is no dispute of having incurred expenditure which have been argued to have been incurred by making account payee cheques for purchasing the said gifts. No such expenditure, which has been prohibited by law, has been brought on record by the AO and in the facts and circumstances of the case, such expenses by taking the volume of the turnover and the income declared being second year operation of the assessee’s business, the expenditure incurred is reasonable - no infirmity in the order of CIT(A), who has rightly deleted the addition so made - this ground of the revenue is dismissed. Disallowance of Legal and Professional charges - Held that:- Amount has been paid through cheques after deducting tax at source. Copies of the bills and TDS certificate are on record. Moreover, the AO can not sit in the arms of the businessman and cannot decide how to run the business. This is a well settled legal proposition laid down by various courts of law. In the facts and circumstances of the case, no infirmity in the order of CIT(A), who has rightly deleted the addition so made - ground raised by Revenue is dismissed.
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