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2023 (2) TMI 1162 - ITAT DELHIDisallowance u/s 14A - no dividend income received - HELD THAT:- During the year, the assessee has not received any dividend, hence we hold that in the absence of any dividend received and claim of exempt income, no disallowance u/s 14A is called for. Foreign Travel Expenses disallowed - assessee could not produce any documentary evidences inspite of providing multiple opportunity - CIT(A) deleted the addition on the grounds that all the details have been provided and the foreign travel is a business contingency - HELD THAT:- It reflects the details of employees name, designation, date of visit, and the countries visited. We find that the employees visited countries namely, Nairobi, South Africa, Singapore, China, Tashkent, Denmark, Dhaka, France, Bangkok, Hong Kong, Dubai, Italy, USA, Canada, Sri Lanka. We find that the entire trips have been made by the employees and the Directors. There were no trips pertaining to any personal staff or relatives of the directors of the employees. All the tours have been made for the purposes of expanding the business for imports and exports. In the absence of any personal element or nonbusiness purpose brought by the AO any tours undertaken, we hereby affirm the action of the ld. CIT(A) in deleting the addition. Car Expenses disallowed - Addition made on the grounds of personal use owing to non submission of any log books produced for verification of the purpose of the journeys performed by the company vehicles and the personal use of the cars by the directors cannot be ruled out - CIT(A) deleted the addition on the grounds that the details of the personally owned vehicle by the directors were obtained and examined - HELD THAT:- Since, the directors have also own the vehicles in their personal capacity, the allegation of the AO that the company vehicles were used for personal purpose in the absence of any tangible evidence cannot be sustained. The decision of the CIT(A) is hereby affirmed. Trading Results of Fabrics - AO applied GP @ 28.97% on the total turnover - CIT(A) held that the GP rate of 28.97% of footwear cannot be applied to the sale of fabric and held that GP @ 7% on the declared sale is acceptable - HELD THAT:- Having gone through the entire issue of purchase and sale of goods to the tune of Rs.8 .3 Cr. and after examination of the material on record, we decline to interfere with the order of the ld. CIT(A) determining the GP @7%.
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