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2013 (12) TMI 633 - ITAT MUMBAIAdhoc disallowance of Rs.75,000/- out of conveyance expenses, staff welfare expenses, sundry expenses and traveling expenses – Held that:- Certain expenses were not supported by third party vouchers – The disallowance was restricted to the amount for which the assessee failed to substantiate with the vouchers – Decided against assessee. Disallowance of 10% of freight expenses and other expenses – The assessee issued Debit notes to its principal companies for Rs.5.36 crore towards service charges and commission income to the tune of Rs.3.07 crore and reimbursement of expenses worth Rs.2.29 crore - Held that:- If any expenditure is recorded in the books of account, there cannot be any reason to invoke the provisions of section 69C. Notional income out of reimbursement - The CIT(A) is of the view that the assessee must have saved 20% out of such reimbursement - It is for the principal companies to verify the actual expenditure incurred by the assessee on their behalf and then make reimbursement of the same – The authority tried to step into the shoes of the principals for verifying the correctness of the claim lodged by the assessee towards reimbursement of expenses - When the principal companies have reimbursed the expenditure to the tune of Rs.2.29 crore there cannot be any presumption that the assessee must have saved some money out of the same – Decided in favour of assessee.
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