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2018 (1) TMI 384 - AT - Income TaxDisallowing 10% of travelling expenses - Held that:- In this case the AO observed that a sum of ₹ 1,46,539/- was incurred by the assessee in cash on account of travelling expenses and the same was not verifiable. Hence, the AO disallowed 20% of ₹ 1,46,539/- which comes to ₹ 29,308/- and thus made an addition of ₹ 29,308/- in the hands of the assessee. In first appeal, the ld. CIT(A) has reduced the same to 10% which comes to ₹ 14,654/-. During the course of hearing, the assessee submitted the ledger account of travelling expenses incurred by the assessee vide PBP 13 to16. Taking into consideration the facts and circumstances of the case, it will be in the interest of equity and justice to reduce the travelling expenses to ₹ 4,654/-. Thus the assessee will get the partial relief of ₹ 10,000/-. Hence, the ground no. 1 of the assessee is partly allowed. Long Term Capital Gain on sale of gold after allowing the indexed cost of acquisition - Held that:- CIT(A) computed the indexed cost of acquisition at ₹ 7,58,400/- . From the records submitted by the assessee, it is observed that the assessee had purchased 300 gms. Gold in F.Y. 2006-07 and 1000 gms. Gold in F.Y. 2004-05 whereas the 800 gms is sold during the year. The ld. CIT(A) is therefore, justified in holding that 800 gms. gold sold during the year is out of the gold purchased in F.Y. 2004- 05 by following the FIFO method. In this view of the matter, the Bench concurs with the finding of the ld. CIT(A) in allowing the indexed cost of acquisition at ₹ 7,58,400/-. Thus Ground No. 2 of the assessee is dismissed.
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