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2014 (3) TMI 364 - ITAT AHMEDABADAddition made by treating the supplementary claim as income accrued – Whether the CIT(A) was justified in disallowing the proportionate expenditure - Held that:- CIT(A) has given finding that since the supplementary claim was not accepted by the FCI that the income did not accrue during the year, hence the same cannot be taxed during the current year – thus, The CIT(A) is justified in making the disallowance of the expenditure since the assessee himself has not offered the corresponding income for taxation – the CIT(A) ought to have given a finding about the quantum of expenditure incurred by the assessee on such expected receipt - thus, the matter is remitted back to the CIT(A) for fresh adjudication for disallowance of expenditure – Decided in favour of Assessee. Disallowance of business expenditure – Held that:- The FCI issued certain show-cause notices and a substantial amount has already been recovered by the FCI – thus, the CIT(A) was not justified in disallowing the entire expenditure and the order of the CIT(A) on the issue is set aside to verify in respect of those expenses which have been accepted by the assessee as his liability during the year under consideration and payment thereof recovered by the FCI - In respect of the expenses, where FCI has rejected the representation of the assessee, such expenditure be allowed in the year in which representation of assessee is rejected by FCI – Decided in favour of Assessee.
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