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2016 (11) TMI 973 - HC - Income TaxBusiness expenses being commission on sales paid disallowed - Held that:- The arguments is that in order to turn down the claim for expenditure the demand of the above quoted Section 40 (1) and (2) of the Income Tax Act should have been met with and reasons should have been supplied. No reason has been supplied for turn down the claim at 15%. The arguments is also that dis-allowance would have been such expenditure, which is excessive or unreasonable having regard to the fair market value of the goods then alone it could have been turned down. There is not even a whisper in the order of the tribunal that the claim made by the assessee is either unreasonable or excessive. No comparative data has been examined. No evidence there too was produced as to how such business allowance are to be made. In view of the above, it would be in the interest of justice that the matter should be re-examined again after giving opportunity of hearing to the parties and fixing date in the matter. The matter be decided having regard to the above quoted sections 40 A (1) and (2) of the Income Tax Act within three months from the date of production of a certified copy of this order before the Tribunal.
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