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2017 (10) TMI 1251 - AT - Income TaxDisallowance of expenses - assessee has failed to establish that it had carried out the business activities - Held that:- We do not find any evidence on record which establishes the assessee had carried out the business activities relating to the projects Hindon River Mills Project and Hydro Project, during the financial year relevant to the assessment year under consideration. The AO has specifically mentioned that from the notes to accounts and the WIP expenditure break up it is amply clear the expenses incurred on the projects are not on account of any factual constructions related activities and the same indicates that the project is in the preliminary stage and since the assessee has entered into a construction contract the entire expenditure is relatable to the work in progress. The Ld. CIT (A) has confirmed the disallowance made by the AO after considering the entire factual matrix of the case. The assessee did not produce any evidence even during the appellate proceedings to establish that business activities had commenced during the financial year relevant to the assessment year under consideration. - Decided in favour of assessee Allowable business expenses - travelling expenses - Held that:- Since, the assessee has failed to justify that the travelling expenses was incurred wholly and exclusively for the business purposes before the authorities below and since no material was brought before us to substantiate its claim. We do not find merit in the appeal of the assessee. We therefore, uphold the findings of the Ld. CIT (A) and dismissed this ground of appeal of the assessee.
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