CIT v. S.S.P. (P) Ltd. - Taxpublishers.in

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The Tax Publishers2012 TaxPub(DT) 0360 (P&H-HC) : (2011) 202 TAXMAN 0386 INCOME TAX ACT, 1961 --Business expenditure--Ad hoc disallowanceSite expenses, telephone expenses and maintenance expenses--AO disallowed assessee's claim for business expenditure incurred on site expenses, maintenance expenses and telephone expenses on the ground that these expenses were not wholly or exclusively for the purpose of business. Commissioner (Appeals) held that disallowance was made on ad hoc basis without there being any material which justify such disallowance. *Held:* Audited books of account along with vouchers were produced by assessee and thereafter AO had failed to show that the said expenditure was not for business purposes. Commissioner (Appeals) was justfied in holding that disallowance was made on ad hoc basis and, therefore, it was deemed to be deleted. Income Tax Act, 1961 Section 37(1) IN THE PUNJAB & HARYANA HIGH COURT ADARSH KUMAR GOEL, ACTG. CJ. & AJAY KUMAR MITTAL, J. CIT, & v. S.S.P. (P.) Ltd. IT Appeal No. 535 of 2010 A.Y. 2005-06 20 July 2011 Appellant by : Urvashi Dhugga JUDGMENT *Ajay Kumar Mittal, J.* This appeal under section 260A of the Income-Tax Act, 1961 (for short 'the Act') has been filed by the revenue against the order dated 18-11-2009, passed by the Income Tax Appellate Tribunal Delhi, Bench G, New Delhi (in short 'the Tribunal') in ITA No. 2698/Del./2009 relating to the assessment year 2005-06. 2. The following substantial questions of law have been claimed for determination of this Court: SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2012 TaxPub(DT) 0360 (P&H-HC) : (2011) 202 TAXMAN 0386

INCOME TAX ACT, 1961

--Business expenditure--Ad hoc disallowanceSite expenses, telephone expenses and maintenance expenses--AO disallowed assessee's claim for business expenditure incurred on site expenses, maintenance expenses and telephone expenses on the ground that these expenses were not wholly or exclusively for the purpose of business. Commissioner (Appeals) held that disallowance was made on ad hoc basis without there being any material which justify such disallowance. Held: Audited books of account along with vouchers were produced by assessee and thereafter AO had failed to show that the said expenditure was not for business purposes. Commissioner (Appeals) was justfied in holding that disallowance was made on ad hoc basis and, therefore, it was deemed to be deleted.

Income Tax Act, 1961 Section 37(1)

IN THE PUNJAB & HARYANA HIGH COURT

ADARSH KUMAR GOEL, ACTG. CJ. & AJAY KUMAR MITTAL, J.

CIT, & v. S.S.P. (P.) Ltd.

IT Appeal No. 535 of 2010

A.Y. 2005-06

20 July 2011

Appellant by : Urvashi Dhugga

JUDGMENT

Ajay Kumar Mittal, J.

This appeal under section 260A of the Income-Tax Act, 1961 (for short 'the Act') has been filed by the revenue against the order dated 18-11-2009, passed by the Income Tax Appellate Tribunal Delhi, Bench G, New Delhi (in short 'the Tribunal') in ITA No. 2698/Del./2009 relating to the assessment year 2005-06.

2. The following substantial questions of law have been claimed for determination of this Court: