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2012 (11) TMI 471 - ITAT, AHMEDABADPersonal expenses - Disallowance of Traveling, Telephone and Mobile Expenses - Held that:- The assessee could not produce supporting vouchers for each and every item of expenses claimed under the head “Travelling, Telephone and Mobile Expenses”. The disallowance made on account of personal element involved under this head of the expenses at the rate of 10% at Rs.58,929/- could not be said to be excessive - against assessee. Disallowance of Credit card expenses & penalty for delayed payments - Held that:- As assessee has not made any submissions before the CIT(A), there is no mistake in the order of the CIT(A) in confirming the disallowance - against assessee. Disallowance u/s.40(a)(ia) - Held that:- As decided in Merilyn Shipping & Transports Vs. ACIT [2012 (4) TMI 290 - ITAT VISAKHAPATNAM] the provision of section 40(a)(ia) are applicable only to the amount of expenditure which is payable on 31st March of every year and it cannot be effected to disallow which had been actually paid during the previous year, without deduction of TDS - thus disallowance is restricted to Rs.4,85,252/- amount payable as on 31-3-2005 and the balance disallowance is deleted - partly in favour of assessee. Addition on estimation of closing stock - CIT(A) deleted the addition - Held that:- The method of accounting of the assessee was same as adopted by the assessee in the earlier period and has been accepted throughout by the department. There is no valid reason for disallowance of 50% of the purchases and the AO has not taken into consideration RA bill for the month of March, as also payment received during the month. In the facts and circumstances of the case, there being no valid reason for making the addition on account of estimation of closing stock - in favour of assessee. Disallowance on account of site expenses - CIT(A) deleted the addition - Held that:- The assessee could not file site-wise break-up of the site expenses, and therefore the disallowance made at Rs.32,448/- by the AO was quite justified - against assessee. Disallowance of office expenses - Held that:- There is no finding of any non-genuineness of the expense claimed under the head “salary & wages”. These expenses incurred under the head “salary & wages” by nature did not allow any personal use of the assessee, and therefore the CIT(A) was justified in restricting the disallowance to the extent of 10% of the traveling expenses and of telephone and mobile expenses claimed by the assessee - partly in favour of assessee.
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