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2017 (7) TMI 662 - AT - Income TaxAddition u/s 40A (3) - Held that:- It is evident that the factum of the genuineness of payments and identity of the payees has not been doubted by the lower authorities and that the principle of Commercial expediency of the payment has been ignored. Thus we hold that order of the ld CIT(A) is not based on finding of facts or correct application of law. We, accordingly hold that CIT(A) was not justified in upholding the addition of ₹ 80,024/- made by the Ld AO U/s 40A(3) of the Act. Addition on adhoc basis without rejecting the books of account and pointing out any specific instance of unverifiable or unvouched expense - Held that:- The accounts maintained by the assessee have been audited in accordance with the provisions contained in the Act. The books of account have been accepted as true and correct for the purposes of computation of income from business. We, therefore, do 12 not find any justification in sustaining such an ad hoc or lump-sum disallowance by the ld CIT (A) without any basis. Therefore, we are of the considered view, that no such adhoc disallowance, can be justified. Accordingly, the adhoc disallowance confirmed by the by the CIT (A) at ₹ 2,00,000/- out of various expenses is deleted
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