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2014 (6) TMI 746 - AT - Income TaxGenuineness of commission expenses Held that:- The assessee has furnished list of names of persons to whom it has claimed to have paid commission, but could not file their complete address (except in a few cases) and also could not file confirmations of the payees of the commission and their addresses - the CIT(A) has deleted the entire addition on the plea that the payment of commission was paid through account payee cheques and the assessee has also deducted TDS as per the provisions of law - the assessee could not prove the genuineness of the payment of the entire commission expenses by it thus, the disallowance out of commission expenses is restricted to Rs.3,00,000 Decided partly in favour of Revenue. Deletion of cessation of liability u/s 41(1) of the Act Disallowance of unproved creditors for expenses - Held that:- The opening and closing balance of the party were same and there is no evidence brought on record that the assessee has derived any benefit in cash or in any other manner whatsoever Following DSA Engineers (Bombay) Vs. ITO [2009 (3) TMI 646 - ITAT MUMBAI] - when the assessee continues to reflect or record the liabilities as still payable to the creditors and decides not to write them off unilaterally, the AO has higher levels of responsibility he has to establish with evidence that the book entries were wrong or not bona fide thus, the order of the CIT(A) is upheld Decided against Revenue. Deletion of disallowance of meeting expenses Held that:- The expenditure was incurred for organizing meetings on regular intervals of all the marketing personnel situated at different locations to co-ordinate its business of the assessee - the assessee-company has incurred the expenditure on cash basis in the year in which the vouchers were received and payments were made - CIT(A) has rightly held that expenses having crystallized during the year are allowable Decided against Revenue. Disallowance of conveyance expenses Held that:- The way of the accounting is unusual and does not inspire confidence with regard to the genuineness of the entire conveyance expenses claimed by the assessee - The onus was on the assessee to prove the genuineness of the expenses claimed by it - the disallowance out of conveyance expenses is restricted Decided partly in favour of Revenue.
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