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2016 (8) TMI 1083 - AT - Income TaxDisallowance of interest expenses - Held that:- When the assessee is paying interest on the amounts borrowed by it, the only business fund can be used on the ground of business expediency and not otherwise. The assessee is to prove the nexus that the assessee has business transactions with this party but during the course of hearing, the learned counsel for the assessee submitted that he has no business transactions with this party, therefore, the assessee was unable to prove that business funds were utilised for advancing for business purposes. The peculiar facts of this case prove that the assessee has not been able to substantiate its claim that the advance was given on commercial consideration. - Decided against assessee. Ad hoc disallowance of Kapas expenses - Held that:- As cash payments were made to labourers and these were for exigency of business. It is of the view that there was no basis for the authorities below to reject the claim of expenses of the assessee - Decided in favour of assessee. Disallowance of pressing expenses - Held that:- The disallowance made by the authorities below is not justified - Decided in favour of assessee.
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