Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 931 - AT - Income TaxDisallowance of expenses - CIT(A) deleted the said disallowance made by the AO on the ground that there was not even single instance pointed out by the AO to show that any expenditure claimed by the assessee was either personal in nature or had no nexus with the business of the assessee - Held that:- As pointed by the AO in the assessment order, certain expenditure claimed by the assessee was incurred in cash and the same was not supported by the relevant documentary evidence. Also there was substantial increase in the expenses claimed by the assessee under certain heads as compared to the earlier year and the assessee could not offer any satisfactory explanation of such increase. Having regard to these facts of the case, we are of the view that some disallowance out of various expenses claimed by the assessee was called for and the ld. CIT(A) was not justified in deleting the entire disallowance made by the AO out of various expenses. At the same time, we find that the disallowance of ₹ 42,11,983/- made by the AO on this count was excessive and unreasonable in the facts and circumstances of the case. In our opinion, it would be fair and reasonable that disallowance of ₹ 5,00,000/- is made out of various expenses claimed by the assessee. Accordingly, we sustain the disallowance made by the AO out of various expenses to the extent of ₹ 5,00,000/- - Decided partly in favour of assessee. Disallowance of advertisement & sales promotion expenses - CIT(A) deleted the said disallowance - Held that:- This issue is squarely covered in favour of the assessee by the decision of Co-ordinate Bench of this Tribunal in assessee’s own case for A.Y. 2006-07 [2012 (4) TMI 592 - ITAT MUMBAI] wherein the similar disallowance made by the AO was held to be not sustainable by the Tribunal. Thus we uphold the impugned order of the ld. CIT(A) deleting the disallowance made by the AO pertaining to advertisement & sales promotion expenses. - Decided in favour of assessee
|