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2013 (11) TMI 414 - ITAT MUMBAIDisallowance u/s 37 - Cash expenses and bills and voucers - CIT deleted disallowance - Held that:- The disallowance of expenses on estimated basis on the ground that the same was not supported by proper bills and vouchers is justified but it is a settled legal position that disallowance has to be made on proper basis. In this case the AO had made Ad hoc disallowance without giving any basis for computing the disallowance. No comparison has been made with similar expenses incurred in the last year in assessee’s own case nor any other comparative case has been cited to prove that expenses were excessive this year - CIT (A) has also deleted the disallowance on the account of professional fees. The professional fees had been paid to tax consultants, advocates and architects on which tax had been deducted at source - no infirmity in the order of CIT (A) that there was no justification for disallowance of such expenses. In relation to other disallowances of expenses which is in dispute such as commission, site expenses etc., no supporting material was submitted to justify such huge ad hoc disallowance - Decided against Revenue.
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