Lease rentals paid by the appellant to the owner of leased ...

Lease Rentals Allowable; Conveyance & Phone Expenses Disallowed; Sundry Creditors' Genuineness to Be Verified; Case Remitted.

November 9, 2024

Case Laws Income Tax AT

Lease rentals paid by the appellant to the owner of leased assets for using those assets for business purposes are allowable revenue expenditure, despite not being debited in books of accounts, as the genuineness was not questioned. Conveyance and telephone expenses disallowed as bogus by lower authorities upheld due to lack of contrary evidence. Regarding sundry creditors, the appellant must explain their genuineness if questioned, as idle/unaltered/static creditors require verification. The matter remitted to the AO for de-novo consideration after providing reasonable opportunity of being heard to the appellant. For TDS default disallowance, the AO directed to verify if the expenditure was offered for tax earlier and fulfills conditions for allowability in the relevant year after late TDS deposit.

View Source

← Previous Next →

Lease rentals paid by the appellant to the owner of leased ...

Lease Rentals Allowable; Conveyance & Phone Expenses Disallowed; Sundry Creditors' Genuineness to Be Verified; Case Remitted.

November 9, 2024

Case Laws Income Tax AT

You may also like:

ITAT upheld CIT(A)'s decision allowing deduction of Finance Lease Rental Payments under section 37(1) as revenue expenditure. Revenue's appeal challenging depreciation...

Disallowance of tour and travel expenses - no details were forthcoming from the assessee to substantiate these travel and conveyance expenses and justify that these...

Disallowance of conveyance expenses, staff welfare expenses, sundry expenses and traveling expenses - certain expenses were not supported by third party vouchers,...

The ITAT Delhi ruled on the correct classification of income from property lease - whether as rental income, business income, or other sources. The lease agreement...

Capital gain computation - Allowability of transfer expenses [brokerage, air tickets, hotel accommodation receipts, postal charges receipts, conveyance charges, lawyer...

Addition u/s 68 - Credit balance pertaining to sundry creditors - by disallowing only balance outstanding of these parties as at the end of the year, the Revenue has...

Ad-hoc disallowance of 20% of the creditor value – there is no provision in the Act to disallow 20% out of sundry creditors. - AT

Rental deposits written off - allowable revenue expenses u/s 37(1) - The assessee could not occupy the property since the required permission was not taken by the owner...

Input Tax Credit (ITC) - upfront lease premium - The upfront premium made is the lease rentals as per the allotment order/letter of Chennai Port Trusts and it is nothing...

Depreciation on leased asset - Solar Generating System – Once, lease rentals are accepted by the revenue, there is no reason to disallow the depreciation - AT

Various issues related to allowability of expenses, deductions, transfer pricing adjustments, and other income tax matters for a pharmaceutical company. Key points are:...

Revision u/s 263 - Order of the AO in respect of unsecured loans, sundry creditors/liabilities and sundry debtors accepted by the AO is erroneous and prejudicial to the...

CIRP - Status of NOIDA authority - Financial Creditors or Operational Creditors - dues outstanding under the lease - , in the lease in question, there has been no...

Disallowance on account of stamp duty charges of lease agreement pertaining to lease period of five years - Stamp duty was required to be paid in order to bring about...

Allowable expenses u/s 37 - Disallowances of foreign travel expenses and other expenses - the expenses incurred by the Assessee on various items as well as the...

Quick Updates: