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2014 (1) TMI 905 - ITAT AHMEDABADRestriction of addition - Disallowance made for vehicle, office and sales promotional expenses – Held that:- The disallowance out of office expenses reasonably accepted by the appellant himself i.e. 20% - in business promotion account, a bill of silver purchases from M/s. C.B. Brothers, Surat, shows 3.667 kg silver which does not indicate any description of silver coins - the assessee has purchased silver only on 07.11.2007 in the name of Tirupati Traders - It is true that the appellant had paid this amount through account payee cheque which does prove that this expense is incurred wholly and exclusively for business purposes - The evidence showed the purchase of silver not idols or coins – the order of the CIT(A) under the head business promotion to the tune of Rs.69,875 – Decided partly in favour of Assessee. Deletion of addition made by estimating the GP @2.42% - Attempt made to lower the taxable income by inflating the expenses – Held that:- The AO rejected the books of account on the ground of lesser G.P. compare to his sister concern and discrepancy in office expenses and business promotion expenses - there was no defects found in the books of account and the appellant had maintained proper books of account including the bills and vouchers which were produced before the A.O. for verification - both the concerns deal with different cement companies having different agreements and terms and conditions - The rejection of book result by the A.O. is not based on solid grounds. G.P. has increased comparative preceding year - The ld. CIT(A) thoroughly had examined the issue of G.P. which support the claim of the assessee – Decided against
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