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2009 (9) TMI 510 - PUNJAB & HARYANA HIGH COURTBusiness Expenditure- The Assessing Officer disallowed the claim on account of use of cars/telephones and foreign tour expenses. The Assessing Officer also held that expenditure claimed by the assessee towards repairs should be treated as capital expenditure. The Assessing Officer also applied Explanation (baa) to section 80HHC of the Act to the income of the assessee, claimed by the assessee to be miscellaneous income, such as from sale of scrap and some refunds and also writing back of provisions in earlier years, which according to the assessee did not fall in the said clause. Held that- (i) that the disallowance of Rs. 2,91,774 made by the Assessing Officer on account of personal use of cars/telephones was rightly deleted. (ii) that the disallowance of Rs. 77,552 on account of foreign tours expenses was rightly deleted on the principle of business expediency. (iii) that the amount of Rs. 15,22,822 was rightly held to be revenue expenditure on the ground that it was on repairs. (iv) that since in holding that duty draw back, interest income, miscellaneous income and provisions made in earlier years written back were not covered by Explanation (baa) to section 80HHC, the Tribunal had followed the decision in the case of the assessee for the earlier assessment year, which had attained finality, no substantial question of law.
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