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2022 (12) TMI 930 - AT - Income TaxDisallowance @ 10% out of foreign currency and credit expenses - HELD THAT:- The disallowance @ 10% out of foreign currency and credit expenses has no such specific finding. The assessee in its submission mentioned that the turnover of the assessee 177.64 crores out of which exports amounting to Rs. 70.94 crores. The appellant exported goods to various countries including Italy, Brazil, Germany, China, France, Sweden, Switzerland and Turkey. The appellant claimed foreign traveling expenses Rs. 84,22,581/-. In this reference, the assessee enclosed complete details of expenses so the partial disallowance in relation to the expenses was uncalled for as per the assessee. Here, we find that the 10% addition in the accountant of foreign currency and credit card expenses is liable to be deleted. Staff and welfare gift shagun expenses - To encourage the efficiency working mobility the amount was paid to staff in different occasions. All the payments are vouched and details of the payments are enclosed in APB pages 8 to 56 by the assessee. The expenses are related to this business. So, we find no specific findings in relation to this disallowance of Rs. 4 lac by the Ld. CIT(A) and the expenses are fully connected with the business income of the assessee. Accordingly, the addition amount of Rs. 4 lac is liable to be deleted. Disallowance of depreciation - In the observation of the revenue there is no under valuation of the assets. The assessee booked the expenses in capital account and reason of difference is explained before the revenue authorities. Also a copy of the valuation report from registered valuer of assessee is enclosed on which the clear reflection of assessee's own claim. The report of valuer Mr. V.K. Singhal is duly enclosed - Considering this, the depreciation cannot be rejected on basis of this valuation report. So, the addition is liable to be deleted.
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