Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (12) TMI 308 - AT - Income TaxRevision u/s 263 - allowable business expenses - training expenses incurred on the director of the Appellant company - Held that:- In this case, the expenses were incurred for formal education leading to formal degree being MBA awarded in favour of Mr Arnav Kasliwal [director of the Appellant company], the expenses were incurred by the assessee which definitely required greater scrutiny by the AO before allowing the same as business expenses of the assessee and to see that mandate of Section 37(1) is satisfied . Since, relevant and tangible material was not placed before the AO by the assessee during the course of assessment proceedings u/s 143(3) r.w.s. 143(2), the opinion formed by the AO could not have been proper in the absence of relevant material on record as the AO could not have made proper verifications. Even, the course content of the said course was not produced before the AO despite been asked by the AO during the course of assessment proceedings u/s 143(3) r.w.s. 143(2). Thus, in the absence of relevant and vital information as detailed above, the AO could not have made proper verifications which ought to have been made to have come to the conclusion that these are business expenses allowable u/s 37(1) being incurred wholly and exclusively for the purposes of business of the assessee, which has certainly rendered AO assessment order as erroneous as well prejudicial to the interest of Revenue amenable to interference by learned Pr. CIT by invocation of revisionary powers u/s 263 as the said expenses stood allowed as business expenses despite being absence of relevant and tangible material on record before the AO. Thus CIT has rightly invoked the provision of Section 263 - Decided against assessee.
|