ITAT upheld the CIT(A)'s order, affirming the assessee's method ...

Assessee's Net Accounting Method for Reimbursement Expenses Validated, Tribunal Confirms Transparent Financial Reporting

April 15, 2025

Case Laws Income Tax AT

ITAT upheld the CIT(A)'s order, affirming the assessee's method of net accounting for reimbursement expenses. The tribunal found the assessee consistently followed a transparent accounting practice, with expenses properly documented in client ledger accounts and appropriate TDS deducted. Despite the AO's initial disallowance, CIT(A)'s comprehensive review of accounting records and lack of adverse comments from the AO validated the assessee's expense claims. The tribunal ultimately decided in favor of the assessee, rejecting the revenue's challenge to the expense reimbursement.

View Source

← Previous Next →

ITAT upheld the CIT(A)'s order, affirming the assessee's method ...

Assessee's Net Accounting Method for Reimbursement Expenses Validated, Tribunal Confirms Transparent Financial Reporting

April 15, 2025

Case Laws Income Tax AT

You may also like:

TP adjustment on account of reimbursement of seafarer expenses - Revenue has only doubted the genuineness of the alleged reimbursement of expenses made by the assessee...

Rejection of books of account - Correct method of accounting - following cash system of accounting instead of accrual method of accounting - He has not cared to discuss...

Disallowance of contingency expenses claimed by the assessee. The Assessing Officer (AO) disallowed the contingency expenses despite acknowledging that the total cost...

Accrual of income - Reimbursement of expenses treated as income of the Assessee - Application of Markup on Reimbursement Expenses: The contentious issue was whether the...

Addition u/s 56(2)(viib) - Method of valuation of shares - closely held company issues its shares at a premium - The tribunal sided with the assessee, affirming the FMV...

Addition u/s 43B - Method of accounting - unpaid statutory dues of service tax, Excise and PF by changing the method of accounting - The assessee followed the exclusive...

The ITAT addressed a case involving a change in accounting policy from Percentage of Completion Method (POCM) to Project Completion Method (PCM) for revenue recognition....

Tribunal's conclusion that Resale Price Method (RPM) is the most appropriate method upheld. Transfer Pricing Officer (TPO) and Dispute Resolution Panel (DRP) had...

Difference in gross receipts as per Form no. 26AS and books of accounts of the assessee - The assessee is following the method of accounting as per which it was...

Assessee developed intangible assets by incurring expenditure and valued them based on historical cost as per Accounting Standard (AS)-26, which prescribes cost basis...

ITAT partially allowed the assessee's appeal regarding amounts found in a diary and surrendered by a director. The Tribunal held that since the surrendered amount...

TP Adjustment - selection of most appropriate method (MAM) - Resale Price Method or Transactional Net Margin Method - Introduction of Fresh Comparables - Removal of 3%...

TP Adjustment - 'arranged' pricing' - TNMM method or CUP method - the superiority of any particular method to arrive at the ALP is ruled out.The TNMM (Transactional Net...

Determination of income - The Tribunal agreed with the Ld. CIT(A)'s finding that the assessee, a real estate developer, has consistently followed the Project Completion...

Unexplained expenditure - certain entries were found unmatched / not accounted for in the books of accounts in the expense ledger of the assessee - The assessee...

Quick Updates: