Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (11) TMI 947 - AT - Income TaxAddition on account of alleged bogus purchases - as per assessee he has placed on record documentary evidences in the shape of purchase summary, copies of challans, purchase orders - Held that:- As rightly noted by AO, the assessee has failed to provide transport details / any other documentary evidences to substantiate the delivery thereof. It is also undisputed fact that the all suppliers were listed as hawala dealers by Sales Tax Department, Maharashtra and the assessee failed to produce even the single supplier to confirm the transactions. The complete onus to prove the genuineness of the purchases was upon assessee and the same, in our opinion, has remained unfulfilled. Therefore, the stand of first appellate authority, under the circumstances, in making estimated additions, was quite fair and justified. However, keeping in view the overall factual matrix including VAT rates, we find that estimation to be slightly on higher side and therefore, we reduce the same to 8%. Secondly, upon perusal of details, it is noted that the net amount of expenditure [excluding VAT] as debited by the assessee in the profit & loss account aggregates to ₹ 47,92,345/-. Therefore, by modifying the impugned order, we restrict the impugned additions to 8% of net alleged bogus purchases of ₹ 47,92,345/- which comes to ₹ 3,83,388/-. - Decided partly in favour of assessee. Disallowance of foreign education expenses - Allowable revenue expenditure - expenditure incurred in relation to knowledge enhancement of the key personnel of Assessee Company namely Nakul Toshnival aged around 36 years - Held that:- The program was designed as an executive program for experienced professionals having relevant work experience who wished to develop analytical and leadership skills necessary to formulate and advocate policy on key international issues - the said arrangement was duly supported by an agreement dated 13/01/2011 having onerous stipulations for the director to return back to India after completion of the program and serve the assessee for a minimum period of 5 years. Also, the director was liable to refund the said expenditure in case of breach of various terms of the agreement. The expenditure was duly authorized by the Board of Directors of the assessee company. The offer letters of the concerned universities offering the aforesaid course to the director has also been placed on record - thus the aforesaid expenditure as incurred by the assessee fulfilled the conditions of Section 37(1) and was incurred in furtherance of assessee’s business interest and hence, allowable. - Decided in favour of assessee.
|