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2021 (9) TMI 1078 - ITAT CHENNAIAllowable business expenditure - Disallowance of expenses debited under the head 'other expenses' - as per AO there is no nexus between expenditure debited into the profit & loss account and business activity of the assessee - CIT-A allowed partial relief in respect of loan processing charges, where amount held to be pertains to loans/advances of lending activity and the balance amount was sustained - HELD THAT:- As we go through the nature of expenses like filing fees for ROC, office electricity, postage expenses, printing & stationery and secretarial/other expenses, all expenses are in the nature of routine expenses required to be incurred by any corporate entity for maintaining corporate status of the assessee - these expenses cannot be disallowed merely for the reason that there is no revenue from operations - we direct the AO to delete additions made towards filing fees for ROC, office electricity, postage expenses, printing & stationery and secretarial/other expenses. Processing charges - finding of the ld. CIT(A) that 2/3rd of processing charges relates to loans/advances of lending activity of the assessee and hence, apportioned said expenses between business activity of the assessee and non-business activity and thus, allowed relief of ₹ 75,327/-. Facts remain unchanged. The assessee has failed to bring on record any evidences to prove that said expenditure was wholly and exclusively incurred for the purpose of business of the assessee. Hence, we are inclined to uphold findings of the ld. CIT(A) and reject arguments taken by the assessee - out of total disallowance all expenses excluding processing charges is allowed and insofar as processing charges, findings of the CIT(A) is sustained. Appeal filed by the assessee is partly allowed.
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