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2015 (3) TMI 674 - ITAT BANGALOREAddition of unexplained credit notes - AO's view to addition / disallowance of 50% of the value of the credit notes was to be made due to the fact that, though required to furnish the details of claims made to M/s. ITC Ltd. and the details of expenditure incurred with supporting vouchers, the assessee was unable to furnish the list of claims made to M/s. ITC Ltd. and the assessment was getting barred by limitation - Held that:- Before us, the learned Authorised Representative submitted that all details of the expenditure of ₹ 2,19,93,412 incurred on behalf of M/s. ITC Ltd. on account of sales promotional activity were fully vouched for and the details of claims made from M/s. ITC Ltd. for reimbursement thereof were always available for verification, but the Assessing Officer primarily made the disallowance due to paucity of time, since the assessment was getting barred by limitation. As find from the impugned order, that the learned CIT (Appeals) has just upheld the adhoc disallowance made by the Assessing Officer without any examination or cross verification. In this factual matrix, we are of the view that the authorities below have failed to fully and thoroughly examine the assessee's claim of the incurring of expenditure on sales promotion on behalf of M/s. ITC Ltd. and its reimbursement, due to paucity of time. We also find that there has been a failure on the part of the authorities below to cross verify the claims of the assessee in this regard with M/s. ITC Ltd. and whether at all there was an element of income therein. - Decided in favour of assessee for statistical purposes.
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