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2018 (6) TMI 1028 - ITAT JODHPURDisallowance u/s 40A(2)(b) - purchase of cotton from the sister concern - difference in prices paid as compared to market prices - Held that:- AO rejected assessee's contentions and proceeded to make a lump sum addition of ₹ 2 lakhs on this account. It is also seen that the Assessing Officer has not made the addition in respect of specific bills where he was of the opinion that the prices paid were higher than the prevailing market prices. Thus this disallowance by the Assessing Officer was not backed by any proper examination and was made without considering the contention of the assessee with regard to the difference in the quality of the cotton purchased - Decided in favour of assessee Disallowance of expenses - Held that:- Ad hoc disallowance which has been made without pointing out any specific instances where the vouchers were not found. The addition has been made on the ground of probability of personal use in telephone and vehicle running expenses. However, since no specific instances have been indicated where the assessee was unable to produce the vouchers or submit the details in respect of these expenses, we find that this disallowance also deserves to be deleted. - Decided in favour of assessee
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