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2018 (1) TMI 75 - AT - Income TaxAddition being 10% of overall expenses incurred by the assessee through credit card on behalf of the employer - Held that:- We find that the expenditure incurred by the assessee employee in his credit card during foreign travel visits, for and on behalf of the company M/s Govind Steel Co. Ltd, is not disputed by the revenue. In fact there is a specific finding in this regard in the order of the ld CIT-A. It is not in dispute that the assessee employee had not claimed any expenditure as deduction which were incurred by him through credit card during his foreign travel. He incurred expenses through credit cards and the same were reimbursed to him by the company M/s Govind Steel Co. Ltd. Moreover, the said expenses were included in the FBT return and hence by placing reliance on the Circular No. 8/2005 dated 29.8.2005, there cannot be any element of perquisite to be taxed in the hands of the assessee employee. In any case, if at all, there is no doubt in the mind of the revenue with regard to the subject mentioned expenses, the revenue could examine the same only in the hands of the company M/s Govind Steel Co. Ltd and not in the hands of the assessee employee. We find that both the authorities below had grossly erred in making some addition towards the same on an estimated basis. Hence we have no hesitation in directing the ld AO to delete the entire addition made in this regard. - Decided in favour of assessee.
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