Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (9) TMI 880 - ITAT MUMBAIAdditions made to the fixed assets during the relevant previous year - Appellant contends that all the details of assets purchased along with copies of major invoices were furnished during the assessment proceedings - HELD THAT:- Appellant had furnished invoices pertaining to some of additions made to the fixed assets during the relevant previous year which are placed. We are of the view that in case the Appellant is able to produce the original of the photocopied invoices placed for verification before the Assessing Officer, then the Appellant should be permitted to claim depreciation in respect of the same. Accordingly, we direct the Appellant to produce the originals of the aforesaid invoices/documents for verification before the Assessing Officer. Subject to verification as aforesaid, the Assessing Officer shall allow depreciation claimed by the Appellant in respect of the same as per law. Disallowance of deduction in respect of commission payments - Addition made as Appellant had failed to provide confirmations, supporting bills & vouchers, and had failed to provide details regarding the nature of the services provided by parties receiving the commission - HELD THAT:- Appellant has furnished complete details of the dealers (i.e. name, address & PAN), amount of commission paid and tax deducted at source along with Letter, filed before the Assessing Officer during the assessment proceedings. Confirmations in respect of 56 major dealers pertaining to commission were also filed with the Assessing Officer. The commission expenses claimed by the Appellant were only 0.085% of the total sales. The Appellant had furnished complete details relating to the commission payments made to the dealers. AO failed to carry out any independent inquiry, even on sample basis, before denying the deduction for entire commission expenses claimed as deduction by the Appellant. It is not the case of the Revenue that the commission payments were made to related parties or group concerns. Thus, we allow deduction for commission expenses as claimed by the Appellant and delete the addition. Ad- hoc disallowance of expenses claimed by the Appellant under different account heads - HELD THAT:- As during the assessment proceedings, the Appellant had explained the nature of business and submitted that the details/documents called for by the Assessing Officer were voluminous in nature and, therefore, had furnished the relevant details and produced supporting documents (included expenses register and expense bills) on sample basis. We find that the authorities below failed to point out any specific defect in the details/documents furnished by the Appellant. No further clarification or specific information/documents were called for by the authorities below. Without pointing out any specific expenses, which according to the authorities below were not allowable as deduction, an ad-hoc disallowance was made by the AO and sustained by the DRP. The claim of deduction of expenses made by the Appellant could not have been dislodged by the authorities below without any basis. Thus we hold that the authorities below erred in making ad-hoc disallowance of expenses. Decided in favour of assessee.
|