Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2023 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (9) TMI 160 - BOMBAY HIGH COURTAllowability of expenses in respect of Sales Support Services and Management Fee - whether they had no direct nexus with the project and was not subject to proportionate disallowance as per Accounting Standards AS-7? - ITAT confirmed deleting the proportionate disallowance as done by CIT(A) - AO stated that Assessee had completed only 26.32% of the project and had rightly allowed the proportionate expenditure - HELD THAT:- Both appellate authorities found that there was no doubt about the genuineness of the expenses incurred, that expenditure was incurred for various personnel and that it had direct correlation to the business of Respondent. Both appellate authorities also accepted that no construction business would run without incurring such kind of expenditure. CIT(A) and ITAT having come to factual finding that the expenses incurred by the Respondent-Assessee on salary of the office employees/management fees do not have any direct nexus with the project and can not be disallowed on the proportionate basis because such expenditure fall in the category of expenditure incurred for running of day to day business, no substantial question of law arises.
|