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2022 (3) TMI 19 - AT - Income TaxDisallowance of expenses - assessee has not submitted any document before tax authorities for claiming the expenses - HELD THAT:- AO fully relied on the findings in the case of Ms. Anita L. Ghadge without analyzing the nature of transactions in that case. Ms. Anita L. Ghadge [2018 (11) TMI 1889 - ITAT MUMBAI] was sub-contracting the agency services to others, whereas the assessee completes the services himself. Ms. Anita L. Ghadge declared the profit @10% whereas the assessee declared Gross Profit @56% after adjusting direct expenses. In our view, the assessee has declared better profit and the fact in Ms. Anita L. Ghadge cannot be applied in the case of the assessee. We observe that no doubt the assessee has not submitted proper documents, the disallowance based on Ms. Anita L. Ghadge to the extent of 30% is too high. Disallowance of 10% of the total expenses will be appropriate, considering the fact that Assessing Officer in the subsequent assessment year has disallowed only 5% of the expenses in the regular assessment u/s. 143(3) of the Act. Therefore, we direct Assessing Officer to disallow 10% of the total expenses claimed by the assessee. Accordingly, ground raised by the assessee is partly allowed.
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