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2018 (4) TMI 451 - AT - Income TaxAddition of proportionate interest and adhoc expenses - Held that:- Since the authorities below have failed to point-out that funds have been extended to Ms. Monisha Mittal out of borrowed funds, therefore, none of the decisions cited by the Ld. D.R. would support the case of the Revenue. Therefore, there is no justification for the authorities below to disallow proportionate interest of ₹ 4,49,437/-. Similarly, out of addition of ₹ 30,000/- on account of disallowance of expenses, the A.O. has not given any specific finding against the assessee-firm as to how much expenses have not been supported by bills and vouchers and as to how the expenses are not admissible for deduction. The Ld. CIT(A) noted in his finding that disallowance have been made by A.O. on estimate basis only. It, therefore, appears that it is an adhoc addition in nature. Therefore, addition of ₹ 30,000/- would also not sustained. - Decided in favour of assessee.
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