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2015 (9) TMI 742 - AT - Income TaxDisallowance of expenses of fabric unit of the appellant company - whether there is no justification in rejecting the claim of expenses by treating the same to be in the nature of capital expenses? - Held that:- Regarding the nature of expenses, the assessee has filed copy of the ledger account on page 29 of the paper book and as per the same, an amount of ₹ 278,529/- was debited to pre operative expenses account during Financial Year 2007-08 with the narration that expenses are regarding the work in progress of Lifestyle Fabric as pre-operative expenses of new project. Similarly as per ledger account on page 28 of the paper book, further amount of ₹ 1,68,455/- was debited to pre-operative expenses during Financial Year 2008-09 with the same narration and total of both these amounts comes to ₹ 4,46,984/- which was written off by the assessee during the Financial Year 2009-10 with the narration “losses booked as unit closed”. Hence, it is seen that true nature of expenses is not available in paper book. None out of seven judgments cited by Ld. AR of the assessee is rendering any help to the assessee in the present case. We have also seen that the assessee has not provided the details and nature of expenses incurred in the present case. Therefore, we do not find any reason to interfere in the order of the Ld. CIT(A). - Decided against assessee.
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