Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (1) TMI 154 - ITAT AHMEDABADLump-sum disallowance of administrative expenses – Held that:- CIT(A) rightly of the view that the addition was made by the AO because no details / evidences were produced by the assessee during the course of assessment proceedings - Even during the course of appeal proceedings no details or evidences have been produced - Though, it has been claimed that the major expense was on account of discounts allowed to the dealers as per instructions of the company, neither details of the expenses nor instructions of the company (Celforce) was produced to justify the claim - The main plank of the appellant is that financial results of preceding year have been accepted u/s. 143(3) and therefore disallowance was not warranted. Previous year records give a basis for determination of income in case it is to be estimated, at least in the case of the assessee comparisons with the results of the preceding years do not help the assessee - The assessee has tried to compare only macro level results, i.e. net profit as percentage of turnover whereas claims under different heads need to be analysed also - expenses incurred under different heads during the year under consideration have increased even though the turnover has substantially reduced - there is no connect between turnover and discount allowed - The expenses cannot be held as incurred wholly for purposes of business - No evidences rather not even details have been made available - No specific defect in the order of the CIT(A) could be pointed out by the assessee – thus, the order of the CIT(A) is upheld – Decided against assessee.
|