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TMI Blog2015 (4) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... reciation - Held that:- Revenue could not point out as to on what reasons the disallowance can be made in the case of the company which is juristic entity when the vehicles are owned by the company. In the case of company there cannot be any element of personal use of the vehicle by the company, therefore, no disallowance can be made. no infirmity in the findings of CIT(A). Disallowance of Property Tax paid in USA - Held that:- as per the matching principle whenever income earned abroad is taxed in India, the expenditure incurred in earning the same is to be allowed. Therefore, we do not find any infirmity in the order of CIT(A) and confirm the same. - Decided against Revenue. - I.T.A. Nos.666 & 667/Lkw/2010 - - - Dated:- 25-4-2013 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penses without appreciating the facts that the assessee company could not justify its claim during the course of assessment proceedings. 4. That the order of the Ld. Commissioner of Income Tax (Appeals) being erroneous in law and on facts deserves to be vacated and the order of the Assessing Officer be restored. 5. That the appellant craves leave to modify any of the grounds of appeal or take additional ground during the pendency of this appeal. I.T.A. No.667/Lkw/2010 (assessment year 2005-2006 1. That the Commissioner of Income Tax (Appeals) has erred in law and on facts in deleting the addition of ₹ 5,83,476/- made out of Foreign Travelling Expenses without appreciating the facts that the assessee company could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer be restored. 6. That the appellant craves leave to modify any of the grounds of appeal or take additional ground during the pendency of this appeal. 2. Ground No. 1 in both the appeals relates to disallowance of foreign travel expenses claimed by the assessee. Since this ground is common in both the appeals, we consider the facts of I.T.A. No.666/Lkw/2010 according to which the Assessing Officer had made a disallowance of entire foreign travelling expenses incurred on various foreign trips undertaken by the Directors as also by its business executives for business purposes. On test check, the Assessing Officer observed that the entire expenses were not incurred for business purpose. He accordingly made ad hoc disal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal use of the vehicle by the company, therefore, no disallowance can be made. Accordingly, we find no infirmity in the findings of CIT(A). We, therefore, confirm his order. 6. Ground No. 3 in both the appeals relates to the disallowance out of HSD Oil Lubricant expenses and in this regard it is noticed that the Assessing Officer has made an ad hoc disallowance of 5% under this head having observed that consumption of diesel was not open to verification with reference to the documentary evidence. This addition was deleted by the CIT(A) having observed that ad hoc disallowances are not possible without pointing out any specific defect in the vouchers maintained by the assessee. 7. The Revenue has preferred an appeal before us but c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs. He accordingly restricted the disallowance to 50% of the total claim. 9. Against the allowance of 50%, the Revenue is in appeal. Since the learned D.R. could not raise plausible arguments in support of his contention, the entire claim of the electricity charges cannot be disallowed. We, therefore, confirm the order of CIT(A) as he has made reasonable disallowance. Accordingly, order of the CIT(A) is upheld. 10. Ground No. 5 of I.T.A. No.667/Lkw/2010 relates to the disallowance of `9,04,951/- made out of Property Tax paid in USA. In this regard it is noticed from the orders of the lower authorities that the assessee has debited a sum of `13,00,951/- under the head Rent Taxes‟. On verification it was found that the propert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Accordingly the CIT(A) has allowed the relief to the assessee. 11. Now the Revenue is before us and placed reliance upon the order of Assessing Officer whereas the assessee has strongly contended that when the income earned abroad is taxable in India, the expenditure incurred in earning the same should be allowed as per the matching principle beside placing heavy reliance on the order of CIT(A). 12. Having carefully examined the orders of the lower authorities, we are of the view that as per the matching principle whenever income earned abroad is taxed in India, the expenditure incurred in earning the same is to be allowed. Therefore, we do not find any infirmity in the order of CIT(A) and confirm the same. 13. In the result, both ..... X X X X Extracts X X X X X X X X Extracts X X X X
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