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2016 (6) TMI 840 - ITAT DELHIAllowability of freight expenses - whether business expenditure in reference to re-export of equipment? - Held that:- Expenses had been incurred in reference to re-export of equipment used by the assessee in its business and hence these were in the nature of business expenditure. Nothing has been brought on record by the department to controvert these findings - Decided against revenue Nature of deductible expenses - whether the assessee was correct in not classifying this sum as work-in-progress for the reason that the assessee was not to recover anything from the client? - Held that:- As the impugned amounts were clearly in the nature of business expenses. The AO had primarily disallowed these expenses because the assessee was not earning any receipt from the project. It is well settled law that it is not necessary that for allowability of expenses, there should be receipt also for justifying the assessee’s claim regarding expenses. - Decided against revenue
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