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2021 (2) TMI 794 - AT - Income TaxAddition of various expenses - non rejection of books of accounts - HELD THAT:- Admittedly. the assessee has maintained regular books of accounts in the course of its business activities and the same has not been rejected and no other additions have been made by the AO barring this disallowance - no addition or disallowance out of expenses under this head has ever been made in any of the assessment years by the AO. Assessment order for the assessment year 2013-14 was framed u/s 143(3) and the AO has accepted expenses of ₹ 27,29,602/- on the total revenue receipts of ₹ 3,38,59,706/- which is 8.06% of the expenses. For the impugned assessment year, the total expenses so claimed comes to ₹ 9,28,094/- on a total revenue receipts of ₹ 1,98,05,868/- which comes to 4.66% of the total expenses. Therefore, find merit in the arguments of the Ld. Counsel for the assessee the expenses so debited in the profit and loss account as reasonable. Coordinate Bench of the Tribunal under identical circumstances in one of the sister concerns namely Nagesh Knitwears Pvt. Ltd. has deleted such disallowance of expenses. Since the books of accounts of the assessee has been accepted by the AO and no other disallowance except these expenses has been made and considering the fact that the expenses so claimed by the assessee appears to be reasonable, as compared to such expenses in the preceding assessment year which has under gone scrutiny by the AO and the order passed u/s 143(3) as no addition has been made - No reason on the part of the lower authorities to make such huge addition by disallowing the expenses. - Decided in favour of assessee.
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