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2016 (7) TMI 1131 - AT - Income TaxDisallowance of the credit cart expenses of two directors of the company - Held that:- The expenses having been incurred through credit card and assessee having failed to establish that these expenses were incurred wholly and exclusively for the purposes of business, we are of the view that the AO was justified in disallowing the same. - Decided against assessee. Un-reconciled purchases - Held that:- It is not the case of the AO and the learned CIT(A) that there is a difference in the quantity or there is a difference in the payments made by the assessee not accounted for by Jindal Poly Films Ltd. These being running account the addition on account of difference in the two parties accounts cannot be made. We are also in agreement with the contention of the learned AR that in the year under consideration the purchases booked by the assessee is of ₹ 236,42,32,571/- as against sales shown by Jindal Poly Films Ltd. of ₹ 236,43,55,556/-. Thus the assessee has claimed expenditure less by ₹ 1,22,985/- on account of the purchases. Having claimed less expenditure the addition cannot be made in the hands of the assessee and accordingly we hold that the learned CIT(A) was not justified in confirming the addition on account of these differences in the reconciliation. Accordingly, AO is directed to delete the entire addition. - Decided in favour of assessee.
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