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Issues involved: Appeal by Revenue against CIT(A) order partly allowing assessee's appeal u/s 143(3) for AY 2008-09 regarding disallowance of expenses claimed as paid to various employees.
Details of the judgment: 1. Background: The assessee, a partnership firm engaged in clearing and forwarding activities, claimed payments to Port employees and Docks Staff which were disallowed by the AO u/s 37 of the Income Tax Act. The entire amount of disallowance was &8377;36,14,843. 2. CIT(A) Decision: The CIT(A) restricted the disallowance to 25% based on tribunal decisions in the assessee's own case for previous years. Revenue appealed against this decision. 3. Tribunal's Analysis: The assessee's counsel referred to previous tribunal orders in the assessee's case for AYs 2002-03 to 2004-05 and AY 1998-99, where disallowance was restricted to 25% of the amount paid to government employees. The tribunal maintained a consistent stand on this issue. 4. Tribunal's Decision: The tribunal, noting the consistent stand on restricting disallowance to 25%, upheld the CIT(A)'s decision. No distinguishing feature was presented by the Revenue to warrant a different outcome. The appeal filed by the Revenue was dismissed. 5. Conclusion: The tribunal dismissed the Revenue's appeal, affirming the CIT(A)'s decision to restrict the disallowance of expenses claimed as paid to various employees to 25% based on previous tribunal rulings in the assessee's case. *Order pronounced on 27th February, 2013.*
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