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2013 (11) TMI 479 - AT - Income TaxAd-hoc disallowance of traveling, conveyance, telephone expenses, staff welfare and sales promotion expenses – Held that:- Traveling and conveyance as well as telephone expenses may include some expenses of personal nature by the partners - No justification for 10% disallowance out of staff welfare and sales promotion expenses on the ground of personal expenses - Therefore, 10% disallowance out of traveling and conveyance expenses and telephone expenses is sustained. Ad-hoc disallowance u/s 37 as expenses or personal nature out of total expense of generator – Held that:- Assessee has given the complete details of generator expenses - The Assessing Officer has made the disallowance of Rs.1 lakh out of the total expenditure of Rs.37,26,302/- simply on adhoc basis. The assessee has filed a comparative chart in which it was pointed out that in the immediately preceding as well immediately succeeding year, there was no disallowance out of generator running expenses. Considering the totality of the above facts, no any justification for adhoc disallowance of Rs.1 lakh out of generator running expenses – Decided in favor of Assessee.
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