Bogus donation receipts justified commission income assessment and defeated political-party tax exemption for inaccurate accounts and reporting failur...
Pure reimbursement without income element escapes tax withholding, while delayed withholding and unsupported provisions face deferred or renewed scrut...
Public benefit requirement defeats charitable registration where residents' association services are reciprocal, member-only facilities governed by mu...
Exempt-income expenditure disallowance is confined to investments that actually generated exempt income, while supported business expenses remain dedu...
Objective characteristics and principal use govern mining-tyre classification, while fresh advance ruling applications may rely on additional technica...
Disallowance of contingency expenses claimed by the assessee. The Assessing Officer (AO) disallowed the contingency expenses despite acknowledging that the total cost figure in the Cost to Completion (CTC) report matched the total cost figure in the books of accounts. The Tribunal held that the contingency expenditure, though initially budgeted, is eventually recorded in the books of accounts as actual expenditure. The Tribunal observed that the AO himself admitted that the total cost figure in the CTC report matched the total cost figure in the books of accounts. Since the contingency figures were recorded against the total expenditure, it is illogical to assume that the assessee booked bogus expenditure and generated cash outflow. The Tribunal emphasized that in survey operations, the onus is on the revenue authorities to provide cogent evidence that the assessee incurred expenses not recorded in the books of accounts. As the impugned expenditure was found recorded in the regular books of accounts, the allegation of non-compliance with Standard Operating Procedure (SOP) is irrelevant. The Tribunal directed the AO to delete the additions from the captioned appeals.
Disallowance of contingency expenses claimed by the assessee. The Assessing Officer (AO) disallowed the contingency expenses despite acknowledging that the total cost figure in the Cost to Completion (CTC) report matched the total cost figure in the books of accounts. The Tribunal held that the contingency expenditure, though initially budgeted, is eventually recorded in the books of accounts as actual expenditure. The Tribunal observed that the AO himself admitted that the total cost figure in the CTC report matched the total cost figure in the books of accounts. Since the contingency figures were recorded against the total expenditure, it is illogical to assume that the assessee booked bogus expenditure and generated cash outflow. The Tribunal emphasized that in survey operations, the onus is on the revenue authorities to provide cogent evidence that the assessee incurred expenses not recorded in the books of accounts. As the impugned expenditure was found recorded in the regular books of accounts, the allegation of non-compliance with Standard Operating Procedure (SOP) is irrelevant. The Tribunal directed the AO to delete the additions from the captioned appeals.
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