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2016 (8) TMI 687 - AT - Income TaxAllowance of professional expenses - Held that:- From relevant operative part 3.1 of the Assessing Officer, we observe that the Assessing Officer made this addition by the only alleging that travelling expenses claimed by the assessed which were not reimbursed to him by the said companies cannot be allowed and the AO treated the same of personal in nature and not linked to the assessee’s professional receipt. We are not in agreement with this conclusion because when the assessee is offering to tax entire professional receipt from consultancy profession amounting more then ₹ 1.54 crores and if some amount of travelling expenses which could not be reimbursed from the clients and which is not expressly linked with his personal use or used by the family members then the same deserves to be allowed as professional expenses. Thus, we inclined to demolish conclusion to the authority below and direct the AO to allow the same as professional expenses. Disallowance for personal uses of telephone, car maintenance and car lease - Held that:- The assessee could not show us, the assessee was having any other telephone or car exclusively for his personal use. Therefore, the element of personal use cannot be ruled out and part disallowance in this regard is obvious. However, we made pointed out that the 1/3rd amount was disallowed is very high after careful consideration and entire facts and circumstances of the case, we are of the view that the 15% of the claimed expenditure would be justified for making disallowance in this regard for the use of telephone and car by the assessee for his personal and family purposes. Therefore, the AO is directed to reduce the disallowance to the 15% of the total claim of the assessee on telephone, car maintenance and car lease. Accordingly, this issue is partly allowed in favour of the assessee. Business promotion expenses disallowed - Held that:- CIT(A) has noted that it is possible that he may be using these facilities, further, his professional interest but in absence of details to link these expenses with the profession of the assessee this amount is disallowed. The CIT(A) has not doubted the quantum of amount incurred by assessed but on the possibility of personal use this claim has been dismissed which is not a proper and justified approach of a tax authority. In totality of facts and circumstances of the case, we satisfied that when on one hand the assessee offering ₹ 1.54 crore income from consultancy business and if against said huge amount the assessed is claiming 1,60,194/- as business promotion expenses which was incurred for meetings various clients then the same cannot be disallowed on the basis of surmises and conjectures without bringing out any allegation or element or fact of personal use. Consequently we direct the AO to allow the same as business and promotion expenses of the assessee
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