Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (2) TMI 92 - AT - Income TaxDisallowance of interest - Nexus of the borrowed funds with that of advance given for non-business purpose - Assessee is in the business of export of readymade garments and films - Advances given to the family members free of interest – Held that:- As concluded from the fact of the case most of the interest amounts are either for the foreign bills discounted or packing credit availed. Amount cannot be related to the advances made by assessee to his family members out of his personal finances. Interest statements which clearly indicate that the Bank interest paid and claimed is only towards business purpose in the business of export undertaken. In favour of assessee Disallowance of education expenses of assessee’s son – Revenue or personal expenditure - Nexus between the business of assessee and the expenditure incurred on education of assessee’s son – Held that:- This expenditure is person expenditure of assessee which he is claiming as business expenditure. We further notice that the stipend received abroad during his stay was not offered as income in assessee’s hands. The claim of the expenditure as business expenditure cannot be allowed on the facts of the case. In favour of revenue Addition on account of personal drawings - Assessee is living with his father in tenanted premises and most of the expenditure was borne by the father – Held that:- There is no need for making any addition on this account. The personal drawings debited to capital accounts are to the extent of Rs.6,46,763/- which comprises of cash withdrawals to an extent of Rs.4,76,177/- and credit expenses of Rs.1,70,586/-. Considering the fact that no estimation was made on account of drawings in previous years or in subsequent years and on considering that the amount claimed is a reasonable. In favour of assessee Addition for non-receipt of confirmation from various suppliers – Held that:- As seen from the orders, just because some confirmations have not been received from the parties, AO disallowed the entire amount under various heads. Assessee furnished lot of details to both AO as well as to the CIT (A) and CIT (A) did not admit any additional evidence on the reason that sufficient opportunity was given to assessee. This issue requires examination by AO afresh. Remand back to AO
|