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2022 (7) TMI 58 - AT - Income TaxDisallowance of legal and professional charges - HELD THAT:- Assessee was unable to furnish any supporting evidence to demonstrate that the amount was actually incurred for the purpose of business. Thus, in absence of any supporting evidence, disallowance, in our view, is justified Expenditure being payment made to contractor for building, designing and interior, while, assessee has claimed it as revenue expenditure, the departmental authorities have treated it as capital expenditure - HELD THAT:- From the description of the expenditure as per the material available on record, it appears to be expenditure incurred for creating an asset. No contrary material has been brought on record by assessee to demonstrate that by incurring the expenditure, assessee has not derived any enduring benefit. That being the factual position, we cannot accept assessee’s claim as revenue expenditure. However, as directed by Commissioner (Appeals), once, the expenditure is treated as capital expenditure, assessee must be granted benefit of depreciation in accordance with law. Disallowance u/s 40A(3) - cash payment made by assessee exceeds the threshhold limit of Rs.20,000 per day as per section 40A(3) - HELD THAT:- Before Commissioner (Appeals), assessee had claimed that the expenditures are in the nature of reimbursement of petrol expenses incurred by the employees and have been made against various bills. Assessee had claimed that no single bill is more than Rs.20,000. However, assessee has not furnished any documentary evidence to back its claim. Assessee appeal dismissed.
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