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2016 (5) TMI 492 - HC - Income TaxDisallowance of miscellaneous expenses and depreciation - ITAT confirmed CIT(A) order deleting the addition - Held that:- CIT(A) has examined the record and the accounts produced by the assessee and after scrutiny of the same returned findings of fact that the expenditure was justified. No rationale has been given by the AO for disallowing 50% of the expenses incurred. Neither is there a finding that the expenditure is not genuine nor have the books of accounts been rejected by the AO. There is no perversity in the findings of fact returned by the CIT(A) and affirmed by the Tribunal. - Decided against revenue Disallowance of interest income accrued on time deposits - ITAT confirmed CIT(A) order deleting the addition - Held that:- Find merit in the submission of the learned counsel for the assessee that the credit journal entries made as accrual of interest were made for the purpose of closing of quarterly results. The entries have been reversed and the interest actually received has been offered to tax. It is not the case of the appellant that the actual interest income received has not been offered to tax. The AO has only taken into account the ‘Journal’ entries credited in the account. The AO has not taken into account the corresponding ‘Journal’ entries debited. The CIT(A) as well as the Tribunal on perusal of the account statement have returned findings of fact that there is no suppression of interest income and the entire interest income has been offered to tax. - Decided against revenue
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