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2019 (11) TMI 806 - AT - Income TaxDisallowance being 6/7 portion claimed as business promotion expenses - HELD THAT:- The assessee produced all the bills/vouchers etc., that assessee made genuine payment to Lodhi Hotel which are not in dispute. Considering the totality of the facts and circumstances of the case and in the light of long staying guest agreement and other material on record which is also confirmed by the owner of the property in question, it is clear that assessee had taken the accommodation in Lodhi Hotel for business purposes only and used it for wholly and exclusively for the business purposes. In preceding A.Y. 2013-2014 A.O. disallowed 10% out of total expenses only. Therefore, considering the rule of consistency, the A.O. at best should have disallowed 10% out of sale promotion expenses instead of making the impugned addition in the assessment year under appeal. Set aside the Orders of the authorities below and restrict the disallowance out of total sale promotion expenses in 10% only. The addition is restricted to ₹ 4,10,534/-. Appeal of assessee is partly allowed.
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