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2017 (1) TMI 245 - ITAT PUNEDisallowance of expenditure - AO disallowed the same on the ground that the expenditure of the preceding assessment years cannot be claimed as deduction during the year - Held that:- The salary and interest to partners for A.Y. 2005-06 and 2006-07 has already been debited to the cost of flats in those years and credited to capital account of partners. Once the same has been debited to the cost of the flat in the preceding assessment years, the assessee cannot claim the same again under the head “other expenses” in the current year. Even though there was no profit in the preceding assessment years, nothing precluded the assessee from claiming the minimum salary paid to the partners in those years. The method followed by the assessee in the instant case amounts to claiming of the expenditure twice, i.e. in the year when the assessee has debited such expenses to the cost of the flats as there was no profit and again during the impugned assessment year when there is profit. This definitely amounts to double deduction. Therefore, do not find any infirmity in the order of the CIT(A) upholding the action of the Assessing Officer in disallowing the expenditure . - Decided against assessee.
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