Assessment u/s 153C - disallowance made u/s 37. Assessing ...

Tax Dispute: Partial Allowance of Expense Claims, Unjustified Disallowance on Depreciation and Late TDS Interest.

November 29, 2024

Case Laws Income Tax AT

Assessment u/s 153C - disallowance made u/s 37. Assessing Officer observed no supporting evidence for claimed expenses furnished by assessee and non-cooperation during search and post-search inquiries. Held: Expenses other than accommodation charges under 'Administrative Expenses', 'Business Promotion Expenses' and 'Tour & Travel Expenses' under 'Selling and Distribution Expenses' are routine and acceptable. Salary income received from assessee company offered, disallowance of depreciation and interest on late TDS deposit debited in P&L not justified. Claim of expenses partly acceptable as per CIT(A) decision. No evidence other than ledger accounts for accommodation, promotion, and travel expenses. Reasonable disallowance of Rs. 15 lakhs estimated considering assessee's offered disallowance of Rs. 9 lakhs from total Rs. 42,42,974 expenses. Proceedings u/s 153C upheld based on Nau Nidh Overseas Pvt. Ltd. case. Revenue appeal partly allowed.

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Assessment u/s 153C - disallowance made u/s 37. Assessing ...

Tax Dispute: Partial Allowance of Expense Claims, Unjustified Disallowance on Depreciation and Late TDS Interest.

November 29, 2024

Case Laws Income Tax AT

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