1984 (1) TMI 84 - AT - Income Tax

Summary

Issues: Disallowance of "goods supplied" expenses, disallowance of shop expenses, disallowance of commission paid to individuals

In the present case, the Appellate Tribunal ITAT Allahabad-A considered various issues related to the assessment year 1979-80 of a registered firm engaged in the wholesale business of selling medicines. The first issue pertained to the disallowance of Rs. 1000 as "goods supplied" expenses by the Income Tax Officer (ITO). The assessee debited total expenses of Rs. 24,362.44 under this head without providing supporting vouchers, leading to the disallowance. The Tribunal upheld the disallowance, considering the lack of vouchers and the history of previous years' expenses. The second issue concerned shop expenses claimed by the assessee, which were disallowed by the ITO and partially reduced by the ld. AAC. The Tribunal sustained the disallowance based on past history and facts presented. The final issue revolved around the commission paid to two individuals, which the ITO disallowed due to lack of evidence regarding orders booked and payments made. Despite the assessee's arguments and submission of affidavits and receipts, the Tribunal upheld the disallowance, emphasizing the absence of proof for payments beyond Rs. 2000 to the commission agents. The Tribunal, after considering all submissions and relevant legal precedents, dismissed the appeal filed by the assessee, thereby affirming the disallowances made by the income tax authorities.