INCOME TAX ACT, 1961

Section 37(1)

Business expenditure - Allowability - Alleged excess deduction claimed -

Assessee-company was engaged in the business of rendering car rental services. AO disallowed the claim for lease rentals alleging that excessive/double deduction was claimed as in his view such expenditure already formed part of the staff welfare expenses debited in profit & loss account. Assessee requested that the matter be remanded back to AO and sufficient opportunity be allowed to it to prove that the lease rentals claimed was not an excessive deduction and did not form part of the staff welfare expenses. Held: As assessee was unable to provide any evidence to show that the expenses debited in profit and loss account did not include the amount of lease rentals separately claimed as deduction and requested Tribunal to remand the matter back to AO and allow sufficient opportunity to it to prove that the lease rentals claimed was not an excessive deduction, matter was remanded back to AO for de novo adjudication after examining the additional evidences, if filed by the assessee in support of its contentions.

Relied:M/s. ICDS. Ltd. v. CIT. Mysore & Anr. (2013) 350 ITR 527 (SC) : 2013 TaxPub(DT) 414 (SC)

REFERRED :

FAVOUR : In assessee's favour (by way of remand).

A.Y. : 2012-13

INCOME TAX ACT, 1961

Section 28

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