ESOP expenditure allowed as FMV difference; long-term capital gain issue sent back for collector rate determination; deferred income additions disallo...
Appeal allowed; impugned order quashed as regulator failed to prove nexus or manipulative scheme; sale genuine - s.12A(a)-(c), Regs 3(a)-(d),4(1),4(2)...
ITAT allowed the assessee's appeal and deleted the additions made by the AO and sustained by the CIT(A), holding that expenses were incurred wholly and exclusively for the assessee's business activities as a sole proprietor and as a working partner in two firms. The Tribunal found the AO's proportionate disallowance rested on an erroneous factual premise that the assessee was a working partner in only one firm; Revenue adduced no material to rebut the business nexus of the expenditures. Consequently the CIT(A)'s order sustaining the disallowance was set aside and the impugned additions deleted.
ITAT allowed the assessee's appeal and deleted the additions made by the AO and sustained by the CIT(A), holding that expenses were incurred wholly and exclusively for the assessee's business activities as a sole proprietor and as a working partner in two firms. The Tribunal found the AO's proportionate disallowance rested on an erroneous factual premise that the assessee was a working partner in only one firm; Revenue adduced no material to rebut the business nexus of the expenditures. Consequently the CIT(A)'s order sustaining the disallowance was set aside and the impugned additions deleted.
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