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]

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.