Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (1) TMI 447 - AT - Income TaxDisallowance of the foreign expenses - Held that:- We have deliberated on the aforesaid claim of the assessee that in the backdrop of the observations of Tribunal in the assesses own case for A.Y(s). 2007-08 to 2009-10, the disallowance out of foreign travelling expenses for the year under consideration may also be restricted to 10% of “Other expenses”. We are of the considered view that in the backdrop of the very fact that the disallowance out of foreign travelling expenses in the preceding years, AY’s 2007-08 to 2009-10, as claimed by the assessee, was restricted by the CIT(A) to 10% of the “Other expenses”, which order of the CIT(A) had thereafter been affirmed by the Tribunal, therefore, going by the rule of consistency in all fairness restrict the disallowance of the foreign expenses for the year under consideration on the same footing to 10% of the “Other expenses” for the year under consideration. The Ground of Appeal No. 1 is allowed. Disallowance in respect of the motor car expenses - Held that:- We find from the records that the assessee had not maintained any log book in respect of the motor cars, as a result whereof the lower authorities had rightly concluded that the element of personal usage of the motor cars cannot be ruled out. We find that the CIT(A) after recording the aforesaid observations had relied on the order passed by his predecessor in the assesses own case for the earlier assessment years, wherein under similar facts a disallowance to the said extent was made in the hands of the assessee. We further find that as observed by the CIT(A), the orders of his predecessor for the earlier assessment years had been upheld in respect of the issue under consideration by the Tribunal. We are of the considered view that as neither any material had been brought to our notice which would persuade us to observe that the observations of the CIT(A) are perverse or incorrect, therefore, find no reason to dislodge the same. We thus in the terms of our aforesaid observations uphold the sustaining of the disallowance of expenses pertaining to motor car usage of ₹ 5,30,432/- by the CIT(A). The Ground of Appeal No. 2 raised by the assessee is dismissed.
|