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2018 (4) TMI 1610 - AT - Income TaxDisallowance of expenditure alleged to be incurred for procuring business - Held that:- Assessee received incentive bonus of ₹ 15,65,000/-. He has been further granted allowance of ₹ 1,56,000/-. It is 10% of incentive bonus which has been paid in accordance with scheme. This break up has not been filed in rest of the two years. Therefore we remitted this issue to the file of the Assessing Officer in other two years with a direction that Ld. Assessing Officer shall verify the amount of allowances given to the assessee in the capacity of Senior Business Associate for earning incentive bonus. In other words, the additional allowance for procuring business has to be allowed to the assessee considering as reimbursement of actual expenditure. Ground No B & C in A.Y. 2011-12 & 2012-13 are set aside to the Assessing Officer for re adjudication. Disallowance of SBA allowance and development allowance - assessee treated these amounts as business income and claimed corresponding deduction in the shape of depreciation etc. - Held that:- Revenue Authorities have rightly treated them as a salary income because assessee was a salaried employee certain expenses could be allowed to him on reimbursement basis if incurred on behalf of the employer for procuring the business but he cannot be treated as doing any business. Therefore grounds of appeal are rejected. Determination of annual letting value of the house property - Held that:- We direct the Assessing Officer to determine the ALV of the house property in these years in accordance with ITAT order passed in A.Y. 2008-09. Whether assessee is entitle to any expenditure under the head business expenses? - Held that:- The assessee separately cannot claim any expenditure under the head business expenditure. In A.Y. 2011-12 & 2012-13, the assessee has not given us the breakup of the expenditure additionally given by LIC to him for earning additional incentive or performing duty as a senior business associate. The scheme considered by us in A.Y. 2010-11 and reproduced above, authorized 10 % of additional convenience allowance or as allowance of the incentive bonus for procuring business, this 10% is to be determined on the basis of certificate of LIC giving the breakup of these expenditure. Thus this issue is also set aside to the file of Assessing Officer. Ld. Assessing Officer first determined the expenditure which were to be construed as a reimbursed by the LIC for procuring business in the capacity of a senior business associate and thereafter work out the total amount allowable to the assessee in A.Y. 2011-12 & 2012-13 - Appeals of the assessee are partly allowed.
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