Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 428 - AT - Income TaxAdhoc disallowance of 20% - absence of verifiable vouchers - Conveyance, Telephone and Sundry Expenses - reasonable estimate - As assessee is unable to explain element of personal nature in above expenses AO disallowed 1/5th of the same and also confirmed by CIT(A). Held that:- 20% of disallowance on these type of expenses is on higher side and accordingly, we restricted the disallowance at 10%. - Assessee's appeal is partly allowed. Disallowing interest paid to parties u/s 40A(2)(B) - charging Notional Interest @12% - CIT(A) confirming and enhancing disallowance @18% made by AO - Held that:- CIT(A) has not given any reason for enhancing the income and there is no indication as to how he has applied the provision of section 40A(2)(b) of the Act.- Decision in the case of CIT vs. Indo Saudi Services (Travel) (P.) Ltd. [2008 (8) TMI 208 - BOMBAY HIGH COURT] followed - Additions deleted - Decided in favor of assessee.
|