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2015 (12) TMI 343 - AT - Income TaxAddition on account of income not shown in the P&L account - AO made disallowance on the basis that the expenditure could not be verified from the Gujarat Electricity Board [GEB] - CIT(A) delted the addition - Held that:- There is no dispute with regard to the fact that GEB has confirmed the recovery of the expenses. However, the AO did not allow the expenses on the ground that GEB failed to correlate the expenses with the year under appeal. We do not find any merit into the contention of the ld.counsel for the assessee that the subject disallowance is not sustainable as the direction of the Tribunal in the earlier round of litigation was clear that the AO would verify from the books of account of the assessee about the expenditure. There is no dispute with regard to the fact that the GEB had made recovery out of the contract payment. Therefore, there is no doubt about the fact that the recovery relates to the business of the assessee. The assessee has submitted that recovery is in respect of the payments made by the GEB on behalf of the assessee. The AO has not brought any material on record suggesting that the recovery were not related to the contract payments. Under these facts, we are of the considered view that the ld.CIT(A) was justified in granting the deduction. - Decided against revenue.
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