Commission expenses incurred for business purpose cannot be disallowed only on the basis of assumptions and presumptions when no incriminating documents were found in search and neither summons are issued by the AO for any specific document — as held by MumTrib in ACIT v Rochem Separation Systems (I) Pvt Ltd ; ITA No. 6932/MUM/2008 to 6938/Mum/2008 : Assessment Year: 2000–2001 to 2006–2007
Decided on: 16 May 2011
In favour of: The Assessee
Business expenditure — Expenses incurred on higher education of the son of the director is not allowable as business expenditure.
Expenses incurred on marriage reception of the son of the director which was considered as business meet is not allowable in the hands of the company and assessable in the hands of the son as income under s 2(24)(iv) as it was a personal obligation met by the company.
Expenditure incurred by the assessee on operation and maintenance expenses is not allowable as there is no evidence of such expenditure either during the search or immediately thereafter and such expenditure has not been recorded in the books of accounts and cash flow on the basis of which such expenditure was incurred was also not placed on record.
In favour of: The Revenue
Decided on: 16 May 2011
In favour of: The Assessee
Business expenditure — Expenses incurred on higher education of the son of the director is not allowable as business expenditure.
Expenses incurred on marriage reception of the son of the director which was considered as business meet is not allowable in the hands of the company and assessable in the hands of the son as income under s 2(24)(iv) as it was a personal obligation met by the company.
Expenditure incurred by the assessee on operation and maintenance expenses is not allowable as there is no evidence of such expenditure either during the search or immediately thereafter and such expenditure has not been recorded in the books of accounts and cash flow on the basis of which such expenditure was incurred was also not placed on record.
In favour of: The Revenue
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