Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (9) TMI 168 - AT - Income TaxDisallowance of expenditure on account of Guest Complimentary and Guest Supplies - CIT(a) deleted disallowance - Held that:- Principally as regards allowability of expenditure debited on account of food and beverages under the head Guest complimentary expenses and expenditure on account of supply of sundry cosmetics under the head guest complimentary the same is allowable. However, we note that as regards guest complimentary before the ld. CIT(A) the assessee has submitted that it was on account of complimentary breakfast and the accounting entry made was guest complimentary is debited and room rents are credited. This has been justified on the ground that room rent is debited on the gross amount which is inclusive of complimentary break fast and or meal. Now in this regard we find from the paper book submitted by the assessee that there is a guest complimentary ledger. This aspect has neither been explained by the assessee nor appreciated by the ld. CIT(A). The scheme of entry shown as above showed that it is not a simple matter as debiting guest complimentary on account of food and beverages and crediting room rent. It cannot be said that the ld. CIT(A) has properly understood the scheme of assessee's entry. Before us also except producing copy of the ledger account the ld. Counsel of the assessee could not explain in detail the impact of the entries in the aforesaid complimentary ledger account. How the guest complimentary account is affected by business promotion, staff welfare and F&B cost adjustment has not been explained. In such circumstances in our considered opinion the issue needs to be remitted to the file of AO. AO is directed to examine in detail the nature of guest complimentary ledger account and the entries made therein. After detail examination of the ledger complimentary account he is directed to consider the allowability of the expenditure booked/affected through this account - Decided in favour of revenue for statistical purposes.
|