Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 761 - AT - Income TaxDisallowance of Architect fee and brokerage expenses - AO disallowed said expenses only on the ground that Sri Perumbakkam project was not completed for the year under consideration, but never called for any proof of expenses, whereas, CIT(A) has confirmed additions made by the AO on the ground that assessee has not furnished any evidence - HELD THAT:- It is a claim of assessee that had been the AO called for evidence for expenses, the assessee could have furnished said evidence. The assessee was not given opportunity to furnish necessary evidence in support of it expenses, we are of the considered view that issue needs to go back to the file of the AO to give another opportunity to the assessee to file necessary evidence in support of its expenses. Disallowance of sales tax & service tax - Claim of the assessee before CIT(A) was that it has opted for composite scheme of payment of sales tax & service tax and as per said scheme, taxes on sales cannot be collected from customers - HELD THAT:- The sales tax & service tax is an item of expenditure, which is deductible in case same is paid by the assessee without collecting from customers - AO as well as learned CIT(A) were erred in disallowing sales tax & service tax debited into profit & loss account by holding that sales tax & service tax is not an expense. As fact with regard to whether the assessee has collected taxes from customers or not is not coming out from records. Therefore, to ascertain the facts, issue has been set aside to the file of the AO and direct him to cause necessary enquiries and if the AO found that the assessee has opted composite method of payment of taxes without collection of taxes from customers, then AO is directed to allow sales tax & service tax paid by the assessee as deductible expenses.
|