2023 (6) TMI 873

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....IT(A) has erred in deleting the disallowance of Rs. 9,11,62,023/- made by the AO Rs. 2,95,77,518/-u/s 14A r. w. Rule 8D of the I.T. At without considering the fact that the assessee failed to reconcile the bank statement and some of the expenses claimed in P&L were attributable to the exempt income. 2. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in deleting the disallowance of Rs. 1,35, 19,052/- made by the AO on account of credit card expenses, without considering the fact that the assessee failed to reconcile the credit card payment with the information available in AIR for the year under consideration even during the remand proceedings. 3. On the facts and in the circumstances of the case and....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....leting the entire addition and therefore no interference is called for. Accordingly, ground no. 1 of revenue is dismissed. 5. Apropos ground no.2 of revenue the ld. CIT(DR) submitted that the Ld.CIT(A) has erred in deleting the disallowance of Rs. 1,35, 19,052/- made by the AO on account of credit card expenses, without considering the fact that the assessee failed to reconcile the credit card payment with the information available in AIR for the year under consideration even during the remand proceedings. The ld. CIT(DR) submitted that the credit card expenses claimed by the appellant was not allowable as the appellant failed to establish that the expenses incurred through credit card were wholly and exclusively for the purposes of busine....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he amount mentioned in the credit card payment details did not tally with the travelling expenses detail. In such a situation of mismatch the ld. CIT(A) rightly held that the credit card payment relate to travelling expenses as well as other expenses also and hence the entire credit card expenses claim by the appellant cannot be allowed fully as the appellant has failed to substantiate an establish that the entire expenses and payment made through America Express bank credit card were incurred wholly and exclusively for the purpose of business of assessee. With these observations the ld. CIT(A) has restricted the disallowance to 20% of the total claim to the extent of Rs. 34,26,760/- against which there is no appeal by the assessee. 8. In ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y held that no additions is called for. He further submitted that the Assessing Officer was directed to verify the same from details of interest income but the appellant could not explain the difference of Rs. 16,868/- and the disallowance was restricted to this extent against which the assessee has not filed any appeal to terminate the litigation. He submitted that when the details of interest and others have been offered for taxation then the ld. CIT(A) was right in deleting the disallowance/addition. 11. On careful consideration of above submissions, at the very outset, from the first appellate order we note that during proceedings the appellant submitted that the Assessing Officer is not correct in making addition since the interest on....