Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (12) TMI 1266 - AT - Income TaxDisallowance of entertainment expenses The assessee was carrying on the business of network marketing for procuring and promoting the business he had to travel outside and had to incur expenses on entertaining the people - Held that:- The assessee could not provide the bills for the expenses incurred Bills cannot be provided for such small expenses incurred for entertaining people The appeal was partly allowed in favour of assessee. Disallowance of travelling and conveyance Held that:- No receipt can be obtained from Taxi operator or for local conveyance, auto rikshwa or manual rikshwa - The expenditure made for refreshment to various agents for which vouchers may not be available Partly allowed in favour of assessee. Disallowance of personal expenses Telephone and mobile expenses - Held that:- For telephone only 10% of the telephone expenses is to be treated for personal usage Depreciation on mobile phone should be allowed as the expenses have been treated as capital expenditure Partly allowed in favour of assessee. Car running and maintenance expenses Held that:- In the absence of details of personal usage, confirmation of personal usage cannot be denied - In case of motor car expenses only 10% of the expenses, can be disallowed towards personal a usage Partly allowed in favour of assessee. Addition on account of household expenses The assessee has shown a sum of Rs. 30,000 towards household withdrawals - The assessee's wife had also shown household withdrawals of Rs.13,756 Held that: - Keeping in view the gross receipts of Rs. 23 lakhs of assessee, the AO estimated household expenses of Rs.10,000/- per month - Many expenses which has been claimed were held to be bogus by the Assessing Officer - Sufficient cash which is shown to have been incurred towards such bogus expenses, is available with the assessee Decided in favour of assessee.
|