TaxTMI 
TaxTMI 
2025 (8) TMI 367
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....referred to as "Act"] dated 22.01.2016 as passed by the ACIT-26(1), Mumbai for the Assessment Year [A.Y.] 2013-14. 2. Grounds of appeal: 1. The Ld. A.O. has disallowed 20% of the total vehicle expenses amounting to Rs. 3,60,172/-, which includes petrol and diesel expenses and depreciation on vehicles, aggregating to Rs. 18,00,859/-. The disallowance was made on the assumption that the appellant had used the vehicle for personal purposes and failed to maintain a logbook. However, it is most humbly submitted that there exists no statutory requirement under the Income Tax Act mandating a logbook for business- related vehicle expenses. The appellant is engaged in business activities that require frequent travel, and the exp....
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...., travel, and conveyance expenses, amounting to Rs. 1,06,315/-, solely on the assumption that they might include a personal component. The appellant respectfully submits that all such expenses are incurred wholly and exclusively for business purposes, essential for the smooth functioning of business operations, and duly recorded in the books of accounts. 3. The Ld. A.O. disallowed the commission payment of Rs. 1,50,000 made to Shri J. M. Shah on the grounds that he was not produced for cross- verification and had denied receiving such payment. However, the appellant submits that the payment was made for genuine business services, duly recorded in the books of accounts, and executed through legitimate banking channels. It i....
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....d. Given that the payment has been properly accounted for and made through banking channels, the disallowance by the Ld. A.O. may kindly be reconsidered. In support of this contention, the appellant places reliance on the decision of CIT v. M.K. Brothers [1987] 163 ITR 249 (Guj HC), wherein the Hon'ble Gujarat High Court held that mere non-production of a party or their denial of a transaction is insufficient to treat a payment as non-genuine if it is duly recorded in the books of accounts and made through legitimate banking channels. The court further emphasized that once the assessee furnishes relevant documentation and payment details, the burden shifts to the A.O. to prove that the transaction is not genuine. In th....
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.... various holiday plans for M/s. Royal Twinkle Star Club Pvt. Ltd. across Maharashtra. In this process, the she incurred commission expenses amounting to Rs. 7,24,826/-. The payments for these commissions were primarily made via account payee cheques, and TDS was duly deducted as per the provisions of section 194H of the Act and subsequently deposited with the Central Government. Out of the total commission expenses Rs. 1,50,000/- was paid to Mr. J.M. Shah via cheque, with TDS of Rs. 15,000 duly deducted and reflected in Form 26AS for A.Y. 2013-14. Though initially unable to appear due to health issues, Mr. Shah later denied receiving the payment, leading to its disallowance by the Ld. AO. It was submitted that Mr. Shah may have omitted to d....
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....n integral part of the total expenses claimed by the assessee. 4.2 The ld.CIT(A) in the course of appeal proceedings, had also called for remand report in respect of the commission payment as the agent could not be examined during assessment proceedings. In the remand report the AO reported that commission amount of Rs. 1,50,000/- stated to be paid by the assessee to Shri. J.M. Shah had been found to be not maintainable and was liable to be rejected, as the said person, had deposed and given a statement on oath before the A.O.in which he has categorically rejected having received any sum towards receipt of commission or any other receipt from the assessee during the F.Y.2012-13, and had also produced his bank statements for all the accou....
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....led to demonstrate the nature of actual service rendered by the said person for which such a substantial commission was supposedly made by the assessee who herself is stated to be a commission agent. Burden to prove that the payment was wholly and exclusively for the business is on the assessee. Evidently there was no agreement as well revealing terms and conditions, service rendered, basis for working out the commission amount etc. As held in the case of Schneider Electric India Ltd vs CIT (2008) 219 CTR 76(Del), no deduction could be allowed on the basis of few bills and the fact that the payments were made by account payee cheques. As held in the case of Swadeshi Cotton Mills Co. Ltd. v. CIT 63 ITR 57(SC), the question whether an amount ....