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2016 (4) TMI 72 - AT - Income TaxDisallowance of sundry expenses - Held that:- Expenses claimed by the assessee are nominal and incurred under the head telephone, conveyance refreshment and tours expenses etc. Since the assessee was in the business of statue making and for that purposes all these expenses are required to be incurred and going by the nature of these expenses, it is very difficult for the assessee to maintain the vouchers of each items of tea, coffee, refreshments, conveyance etc. In view thereof, we do not find any justification to disallow the expenses. In the light of the above, the order of ld. CIT (A) is set aside and all the expenses claimed by the assessee are allowed. - Decided in favour of assessee Interest earned on NSCs taxed - Held that:- The reasoning given by the ld. CIT (A) is in accordance with law. The NSC along with interest are required to be included in the return of income in the year when it become matured. That should be the year when the income is required to be taken into consideration. Since in the present case the NSCs were due way back on the date of maturity, therefore, the interest earned on the said NSCs are required to be added to the income of the assessee in the current assessment year. However, the amount of investment i.e. ₹ 55,000/-, is not required to be added in the year under consideration. - Decided against assessee
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