TaxTMI 
TaxTMI 
2015 (5) TMI 539
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....nd in the circumstances of the case and in law, the Hon'ble CIT (A) erred in confirming the adhoc disallowance @10% made by the Ld. AO. of Rs. 11,698/- out of depreciation on car claimed at Rs. 1,16,981/-. The appellant prays that the said disallowance is unjustified and may please be deleted. Ground No 3: On the facts and in the circumstances of the case and in law, the Hon'ble CIT (A) erred in confirming the adhoc disallowance @10% made by the Ld. AO. of Rs. 19,176/- out of motor car expenses claimed at Rs. 1,91,755/-. The appellant prays that the said disallowance is unjustified and may please be deleted. Ground No 4: On the facts and in the circumstances of the case and in law, the Hon'ble CIT (A) erred in confirming the adhoc disallowance @10% made by the Ld. A.O. of Rs. 1,11,628/- out of Rs. 11,16,282/ - claimed as costume and dresses expenses. The appellant prays that the said disallowance is unjustified and may please be deleted. Ground No 5: On the facts and in the circumstances of the case and in law, the Hon'ble CIT (A) erred in confirming the addition made by the Ld. A.O. of Rs. 2,25,213/- u/s.14A read with Rule 8D of the LT. Act. The a....
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.... in confirming the adhoc disallowance @15% made by the Ld. AO. of Rs. 18,74,668/- out of the expenditure of Rs. 1,74,97,785/- incurred in respect of dancers and dance expenses. The appellant prays that the said disallowance is unjustified and may please be deleted. Ground No. 13: On the' facts and in the circumstances of the case and in law, the Hon'ble CIT (A) erred in confirming the adhoc disallowance @15% made by the Ld. A.O. Rs. 44,10,749/- out of expenditure of Rs. 2,94,04,996/- incurred as setting expenses. The appellant prays that the said disallowance is unjustified and may please be deleted." 3. The assessee in its appeal for assessment year 2009-10, has taken the following grounds :- "Ground No.1: On the facts and in the circumstances of the case and in law, the Hon'ble CIT (A) erred in confirming the adhoc disallowance @10% made by the Ld. AO. of Rs. 2,46,722/- out of motor car expense & depreciation on motor car of Rs. 24,67,220/- (8,88,898+15,78,322). The appellant prays that the said disallowance is unjustified and may please be deleted. Ground No.2: On the facts and in the circumstances of the case and in law, the Hon'....
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....ully gone through the orders of the authorities below and found that assessee is a TV anchor who earns substantial part of his income from anchoring. The profession of the assessee requires him to be presentable while hosting the TV show and, therefore, expenditure incurred by the assessee for costumes and dress materials are for the purpose of business only. Similar issue has been decided by the ITAT in the case of Ameesha A. Patel in ITA No.5883/Mum/2009 for A.Y.2004-05, dated 28-1-2011. Even in this case, the AO had made adhoc disallowance of expenses @15% on the ground that personal element in such expenses cannot be ruled out, which was later confirmed by the CIT(A). On appeal before the Hon‟ble ITAT, it was held as under :- 6. It is important to bear in mind the fact that issue before us is not whether costume and make up expenses constitute admissible deduction, because the Assessing Officer himself has allowed deduction in respect of the same, but the question requiring our adjudication really is whether a part of such expenses incurred by the assessee could be disallowed on the ground that these expenses are personal in nature. Once the Assessing Officer accepts t....
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....val contentions and found that the AO has mechanically applied the provisions of rule 8D, which is not applicable in the relevant assessment year 2007-08 under consideration as per verdict of Hon‟ble Bombay High Court in the case of Godrej & Boyce Mfg. Co. Ltd., 322 ITR 81. Keeping in view the totality of facts and circumstances, where the AO has not recorded any finding to substantiate that any expenditure has been incurred for the purpose of earning the exempt income, we restrict the disallowance to the extent of Rs. 1,00,000/- insofar as the entire exempt income was on account of tax free bond, shares, PPF etc. 10. In ground No.6, the assessee aggrieved for disallowance of expenditure on purchase of paintings for the purpose of business. The AO has discussed the issue at para 6 of his assessment order. After referring to Section 37(1), the AO observed that expenditure was capital in nature, therefore, not allowable u/s.37(1). 11. By the impugned order, the CIT(A) confirmed the action of the AO, against which the assessee is in further appeal before us. 12. We have considered rival contentions and found that the assessee is aggrieved for disallowance of....
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....on that the various records related to production in the form of Continuity Reports, Call Sheets, Rehearsal book etc. were not produced. 17. The AO has discussed the issue at para 9. It was explained before the A.O. that these documents asked by the AO are prepared at the time of shooting of the film and the same are destroyed once the production activity is completed. It was also explained that these documents do not provide any financial data which would be helpful in justifying the claim of expenses under various heads. It is only bills and vouchers which would serve the purpose of verifying the expenses and accordingly, all the bills and vouchers were produced for verification. However, the AO did not agree with the assessee‟s contention and made an adhoc disallowance of 15% of expenditure incurred on junior artists and technicians, costumes and dresses, makeup and hairdressers, dubbing, sound recording, dancers and dance expenses, setting expenses etc. 18. By the impugned order, the CIT(A) confirmed the disallowance, against which the assessee is in further appeal before us. 19. We have considered rival contentions and found that expenses so claimed are re....