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2018 (4) TMI 323 - ITAT MUMBAIDisallowance of Repairs and Maintenance, Sales promotion, travelling expenses, Conveyance Expenses and Other Expenses - Held that:- As gone through the schedule 11 and noted that there is no such expenses as other expensed noted by AO amounting to ₹ 251.96 lakhs. Hence, on this amount no disallowance can be attributed. As regards to these expenses i.e. repair and maintenance, sales permission, travelling conveyance and motor car expenses and postage and telephone expenses the AO has disallowed 10% of the expenses. We are of the view that a reasonable disallowance should be made on account of personal element because 10% is on higher side. Accordingly, we direct the AO to make a reasonable disallowance of 5%. Addition u/s 69C - Held that:- We find that the Assessee has obtained this loan of ₹ 4 crores from GIC Housing Finance Ltd. and GIC Ltd., each containing ₹ 2 crores. We find that the CIT(A) has already deleted the addition but subject to verification of record by the AO. Now, before us the learned Counsel stated that the AO has not given any appeal effect to the order of the CIT(A). We direct the AO to give appeal effect to the order of CIT(A) and after verification of records compute the income accordingly. As regards to the interest towards loans, as contended by the learned Counsel for the assessee that this interest has never been claimed and for which bifurcation was filed before us at page 12 of the assessee’s paper book. The learned Counsel also pointed out from the accounts that no such claim of deduction was made and it is only capitalized in the loan account. It seems that the claim of the assessee seems to be correct but let the AO verify the same from records, whether the assessee has made any claim of deduction in respect to this interest of ₹ 190.14 lakhs. The AO will decide after verification
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