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2013 (9) TMI 598 - ITAT, AMRITSARSelling and distribution expenses - Disallowance in regard to partner’s remuneration – AO disallowed the expenses as higher in comparison with another company SPIL - Held that:- the total percentage of expenses during the impugned year is higher than expenses of SPIL inspite of the fact that there is difference between nature of business carried on by the assessee and that of SPIL as pointed out by the ld. counsel for the assessee.. Selling and distribution expense has to be considered while taking both the components i.e. expenses directly incurred and remuneration paid to working partner (SPIL) for using inter-alia marketing and distribution set up - Book results are duly audited has neither been rejected nor any deficiency was found by the lower authorities. It was also argued there cannot be any assessment of expenses on notional or assumption basis - Disallowance on selling and distribution expenses made by the AO is not justified – Decided in favor of Assessee.
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