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2013 (11) TMI 374 - AT - Income TaxAssessment u/s 153A – Disallowance of labour and site expenses @ 7 percent – Most of the vouchers are self-made, payments have been made in cash and the identity of the payees were not provided completely to make any verification - Held that:- The labour is engaged in far flung areas where it is impossible to maintain documents – It is difficult to verify the identity of labour after gap of years – The disallowance was restricted to 5% - Partly allowed in favour of the assessee. Disallowance out of travelling expenses – The assessee has claimed abnormally high travelling expenses as compared to last year – The assessee did not furnish necessary evidences in support of the travel expenses - Held that:- the CIT(A) have not specifically mentioned as to what particulars have not been furnished by the assessee and whether the particulars which were not given about persons who travelled, or places to which they had travelled or the necessary supporting vouchers for the same – In case of travelling expenses – Not every expense can be supported with third party confirmation – The disallowance was reduced to 50% - Partly allowed in favour of the assessee. Determination of income u/s 143(3) – The search was conducted on 28.7.2008, while the assessment order was passed on 28.12.2007 - Held that:- The assessment order passed u/s 143(3) is still valid – Decided against assessee. Disallowance of miscellaneous expenditure – The assessee has not furnished necessary details of the expenses incurred – Held that:- The AO as well as CIT(A) has not mentioned what evidence were required to support claim - There cannot be any ad-hoc disallowance of expenses in one year without a specific finding about claim of expenditure, when similar expenses have been accepted in other years in assessments framed almost simultaneously and under similar circumstances – Decided in favour of assessee.
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