Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (11) TMI 544 - AT - Income TaxCharacter of income - Addition u/s. 28(iv) - liability ceased to exist - Held that:- In the case of the assessee the loan was taken in the initial year of the company for capital expansion and the loan was written off as capital in nature and assessee had also not claimed any deduction on account of that loan from the income. After considering the above facts and the findings, we do not find any infirmity in the decision of the ld. CIT(A). Therefore, the appeal of the Revenue is dismissed. Disallowance on account of employee’s benefits - Held that:- On perusal of the detailed furnished by the assessee, we find that assessee had demonstrated that increase in salary and other related expenditure was because of the business requirement of the assessee during the year under consideration. The main factors connected to the increase in the impugned expenditure are briefly described that assessee has received new contract Idea Cellular which require more manpower as compared to earlier years. There is a change of management of the company which resulted in different business planning and business philosophy which resulted in providing more remuneration to the employees. The assessee has also provided comparative details of salary payment during the year under consideration compared to the preceding years. AO has not found any defect in the books of accounts and bills and vouchers furnished by the assessee in support of its claim. CIT(A), we observe that AO has disallowed these expenses on presumption basis without disproving the evidences and document/ material furnished by the assessee.- Decided against revenue
|