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2014 (1) TMI 1321 - AT - Income TaxDisallowance on account of staff training expenses – Held that:- No FBT was paid in respect of staff training - It cannot be denied that some of the employees were going to the company's various areas of operation and since the amount have been debited by the company, therefore, no additional evidence is possible to substantiate this claim – thus, the disallowance is restricted and the AO is directed to allow training expenses. Disallowance on account of customer expenses – Held that:- In the details of FBT report in respect of sale promotion, total expenditure shown is Rs. 4,09,015/-, therefore, it cannot be said that the assessee has paid FBT on whole of the customer expenses - vouchers are not available - However, it is also correct that disallowance has been made on higher side – the disallowance of Rs. 2.00 lakhs would meet the ends of justice – order of the CIT(A) set aside and the AO is directed to disallowance of Rs. 2.00 lakhs on account of customer care. Disallowance on account of selling and distribution expenses – Held that:- The disallowance has also been made on excessive basis, thus, the disallowance is restricted to 15% of Sales and Distribution of the expenses - the order of the CIT(A) set aside and the AO is directed to allow 15% of SND expenses. Disallowance on account of Vehicle Running and Maintenance Expenses – Held that:- For personal usage of vehicles, disallowance of 10% is justified – order of the CIT(A) set aside and the AO directed to Accordingly we set aside the order of the ld. CIT(A) and direct the Assessing Officer to make disallowance @ 10% of the total expenditure - Decided partly in favour of Assessee.
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