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2013 (10) TMI 697 - AT - Income TaxAllowability of expenses shown in P&L Account only - Assessee had claimed 50% of reimbursement expenses in the P&L Account and 50% amounting to Rs.34,59,78,545/- were claimed in the computation of income - The disallowance was calculated after considering the fact that assessee had not claimed entire expenditure in the P&L Account – As per Assessing Officer, allowable expenses @ 3% work out to Rs.15,25,81,675/- as against Rs.79.98,76,204/- claimed by the assessee. Thus balance expenses to the tune of Rs.64,10,96,533/- are disallowed. However, since total amount debited to P&L Account is Rs.44,76,99,661/- (Rs.34,59,78,545/- + Rs.10,17,81,116/-, addition in computation of income will be made at Rs.29,51,17,988/- (Rs.44,,76,99,661/- - Rs.15,25,81,875/- - Held that:- Since the Assessing Officer started his computation in the assessment order from the profit as per P&L Account, therefore, the claim of the assessee made in the computation of income amounting to Rs.34,59,78,545/- remained unadjusted. The Assessing Officer in the original assessment order did not give credit for claim of this amount as he started for making computation of income by taking first figure as per P&L Account. Had assessee claimed full claim in P&L Account, the assessed income of the assessee would have been lower by the same amount – Decided in favor of Assessee.
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