Lease rentals paid by the appellant to the owner of leased ...

Not debited expenses allowed; Disallowance upheld for bogus claims; Sundry creditors need explanation; Remitted for fresh adjudication; TDS default verification ordered.

Case Laws Income Tax

November 9, 2024

Lease rentals paid by the appellant to the owner of leased assets for using those assets for business purposes are allowable revenue expenditure, despite not being debited in books of accounts, as the genuineness was not questioned. Conveyance and telephone expenses disallowed as bogus by lower authorities upheld due to lack of contrary evidence. Regarding sundry creditors, the appellant must explain their genuineness if questioned, as idle/unaltered/static creditors require verification. The matter remitted to the AO for de-novo consideration after providing reasonable opportunity of being heard to the appellant. For TDS default disallowance, the AO directed to verify if the expenditure was offered for tax earlier and fulfills conditions for allowability in the relevant year after late TDS deposit.

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Lease rentals paid by the appellant to the owner of leased ...

Not debited expenses allowed; Disallowance upheld for bogus claims; Sundry creditors need explanation; Remitted for fresh adjudication; TDS default verification ordered.

Case Laws Income Tax

November 9, 2024

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