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2015 (6) TMI 630 - AT - Income TaxDisallowance of the loss on expenditure on account of Stamp Papers purchased for buying Stock of Lana by Companies amalgamated with the Appellant Company but which could not be utilized. - Held that:- In the mercantile system of accounting expenses or income are allowed on the basis of incurrence or accrual. The expenditure was not incurred during the year under consideration, nor the expenses can be said to have materialized during the year as discussed earlier in the order, therefore, we hold that expenses incurred on cost of stamp paper has rightly been disallowed by authorities below. The case law relied upon by Ld. A.R. are distinguishable as the case laws relates to write off of book debts whereas the present case relates to allow ability of expenses. However, Ld. A.R. has claimed that in Assessment Year 2008-09, an amount of ₹ 74,11,018/- was received against claim and was offered to tax. The taxation of this amount in Assessment Year 2008-09 will amount to double taxation to this extent. Therefore, we hold that his amount of ₹ 74,11,018/- needs to be reduced from the disallowance made during the year under consideration subject to verification by A.O. Therefore, we are of the opinion that the case of assessee be remitted back to the office of A.O. who on the basis of documents and returns and accounts of assessee for Assessment Year 2008-09 will examine the claim of Ld. A.R. regarding offering of such amount in the return of income and if the same is found to have been offered in such assessment year then he will reduce this amount from disallowance made in the year under consideration. - Decided partly in favour of assessee for statistical purposes.
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