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2018 (6) TMI 168 - AT - Income TaxDisallowance of professional charges - Held that:- For the expenses for which there is no material/evidence on record that these are incurred wholly and exclusively for the purposes of business have been disallowed. The assessee fails on this addition. Applicability of provisions of Section 36(1)(vii) - sum written off - Held that:- We are accepting this claim of the assessee as sale invoice value as raised by assessee in favour of ‘Tropicana Properties’ is included for computing income. Thus,in nut-shell we are allowing claim of the assessee towards write off of sundry balance of ₹ 29,967/- recoverable from Tropicana Properties keeping in view provisions of Section 36(1)(vii) of the 1961 Act. The assessee succeeds on this addition. Sundry balance write off of minor /fractional amount of in-significant value of ₹ 0. 59 being written of - Held that:- Keeping in view that amount involved is insignificant and is merely short/excess being fractional amount of paise fifty nine only written off,the same is allowed. The assessee succeeds on this addition Write off of sundry balance recoverable from ‘Akash Overseas Company’ - Held that:- There is no sales made to said party by assessee. Hence,it could not be shown by assessee that the said amount constituted income which was included while computing taxable income of the assessee. Thus,based on material on record,the claim of the assessee cannot be allowed within the parameters of Section 36(1)(vii) of the 1961 Act and hence claim of the assessee is rejected Write off of sundry balances to M/s Ganesh Stone Company - Held that:- It is for the assessee to have brought on record reasons as to why large receipts post sales cannot be appropriated towards sales. No such evidences are brought on record and this is second round of litigation. Under these circumstances there is no valid justification for allowing this amount of ₹ 93862. 80 as write off of sundry balances as no justification/ business exigency is shown. In the absence of proper explanation/evidences on record,the assessee claim cannot be allowed. Write off with respect to ‘Pacific Marbles Private Ltd.’ it is shown vide ledger account and sales invoices that sales have been made to the tune of ₹ 3,46,000/- on 09. 09. 2005 ,out of which ₹ 2 lacs was recovered on 05. 10. 2005 and the balance amount of ₹ 1,46,000/- was written off. In view of evidences brought on record ,keeping in view provision of Section 36(1) (vii) deduction while computing income of the assessee to be allowed.
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