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2014 (1) TMI 1259 - AT - Income TaxDisallowance of expenses – Expenses incurred on behalf of principal - Gift, chandla, diwali and personal expenses – Held that:- Relying upon A.P.L. (India) P. Ltd. vs. DCIT [2004 (10) TMI 260 - ITAT BOMBAY-E] - The Advocate has agreed that he will have no objection if sundry expenses are disallowed to the extent of 25% of the expenses – thus, the order of the CIT(A) set aside and the AO is directed to make the disallowance of 25% of the sundry expenses – Decided partly in favour of Assessee. Relief allowed out of Diwali expenses and gift expenses – Held that:- The disallowance was restricted to 50% - it is a question of making estimate for disallowing the expenditure for non-business purposes or unsupported by the evidences – it would be adequate if the total disallowance sustained by the learned CIT(A) towards these expenses is restricted to 50% - thus, The disallowance being restricted to 50% of the disallowance in respect of all the expenditure – Decided partly in favour of Assessee.
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