Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (10) TMI 1124 - AT - Income TaxDisallowance of Credit Card Expenses of Rs.3,37,245/- - The assessee has challenged the retention of disallowance of 50% of the total disallowance made by the AO amounting to Rs.3,37,245/- whereas the Revenue has challenged the deletion of the 50% of the disallowance made by the AO – Held that:- AO has rightly disallowed the 25% of the total expenses incurred through credit card amounting to Rs.6,74,490/-. The ld. CIT(A) while further reducing 50% of the said disallowance made by the AO has not given any cogent and convincing reasoning in this respect. Though, in the discussion part of the order he has observed that the disallowance made by the AO in this respect was justified, however, he has deleted the 50% of the disallowance without giving any reasoning for the same - Deletion of the disallowance made by the ld. CIT(A) in this respect was not justified. Addition of Prior Period Expenses – Held that:- Disallowance made by the authorities below under this head, only on the ground that the expenses were relating to prior period, was not justified. The AO should have examined the evidences/documents to ascertain as to whether the liability was ascertained during the financial year in question and if so no disallowance was required to be made - Set aside the finding of the ld. CIT(A) on this issue and restore the matter to the file of the AO with a direction to verify as to whether the bills were raised and liability was ascertained during the financial year in question and if found true then no disallowance be made in this respect – Decided against the Revenue.
|