Self-made vouchers

[AriramaNadar Ramakrishnan]

My assessee is a transporter operater and he had many of self-made vouchers for petty expenses by nature. But the AO has disallowed 10 % of expenses for Rs. 9,20,000/- and it was added to his return of income.

Now the query is whether any person claim the expenses with self-made vourchers by its nature or not? Please advise us with case law reference, since we preferred to go for an appeal.

By A. Ramakrishnan, Chennai - [email protected]

[CAGOPALJI AGRAWAL]

It is not the matter of self made vouchers or outside bill. It would depend on the nature of the expenses and the substance of the transaction.

AI Summary

Nature and substance of expenses determine admissibility of self-made vouchers and consequent tax disallowance. Admissibility and deductibility of business expenses recorded in self-made vouchers depend on the nature of the expenses and the substance of the transaction, not merely on whether vouchers are self-prepared; the assessing officer's disallowance reflects a factual determination about those elements.