TaxTMI 
TaxTMI 
TaxTMI 
2016 (8) TMI 687
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....xtent of Rs. 3,48,186/- is totally wrong, unjustified and illegal. 2. Because the Assessed has incurred expenses for the purpose of his profession/ occupation taxable under the head ' Business and profession' . The ld. CIT(A) has failed to appreciate the nature of profession/occupation of the assessed and has not taken into consideration the supporting documents including the Auditors' Report and books of accounts of the assessed. 3. Because the disallowance of expenditure has been made arbitrarily and without reference to any material on record." 2. Apropos Ground no. 1 : The brief facts are that the Assessing Officer made addition of Rs. 10,97,582/- by alleging that these expenses are incurred for personal purpose by the assessed fo....
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....xpenses incurred by the assessee and reimbursed by the clients and also shows remaining amount of travelling expense has been shown as closing balance which could not be reimbursed by the clients and the assessed claimed the same as professional expenses and there is no element of personal use or use by the family members by the assessee. Therefore, this expense has to be allowed to the assessee. 4. Replying to the above the ld. Departmental Representative strongly supported action to the AO and contended that since the impugned amount was not reimbursed by the clients of the assessed, therefore, the same was not pertaining to his professional activity and in this situation, the AO was quite justified in treating the same as personal of in....
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....ount of travelling expenses which could not be reimbursed from the clients and which is not expressly linked with his personal use or used by the family members then the same deserves to be allowed as professional expenses. Thus, we inclined to demolish conclusion to the authority below and direct the AO to allow the same as professional expenses. 7. The ld. Counsel further pointed out that the assessing officer disallowed Rs. 20,000/- which were incurred by the assessee for charges for preparation and filing of Income Tax Return for relevant AY 2009-10 to M/s. Madhur Investments without any justified reason and basis. The ld. Counsel also pointed out that admittedly and undisputedly assessed submitted audited financial statement of his in....
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....from the bench. The Ld. Counsel of the assessee could not show us, the assessee was having any other telephone or car exclusively for his personal use. Therefore, the element of personal use cannot be ruled out and part disallowance in this regard is obvious. However, we made pointed out that the 1/3rd amount was disallowed is very high after careful consideration and entire facts and circumstances of the case, we are of the view that the 15% of the claimed expenditure would be justified for making disallowance in this regard for the use of telephone and car by the assessee for his personal and family purposes. Therefore, the AO is directed to reduce the disallowance to the 15% of the total claim of the assessee on telephone, car maintenanc....
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....al Centre, Delhi Gymkhana Club, Noida Golf Club for professional meetings and this fact has not been demolished by the authorities below. Even in the relevant part of 3.4, second part last page of the impugned order, we observe that the CIT(A) has noted that it is possible that he may be using these facilities, further, his professional interest but in absence of details to link these expenses with the profession of the assessee this amount is disallowed. The CIT(A) has not doubted the quantum of amount incurred by assessed but on the possibility of personal use this claim has been dismissed which is not a proper and justified approach of a tax authority. In totality of facts and circumstances of the case, we satisfied that when on one hand....