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| The Tax Publishers2019 TaxPub(DT) 6774 (Ahd-Trib) INCOME TAX ACT, 1961
Section 37(1)
Out of the expenses claimed by assessee, Rs. 23 lakhs pertained to depreciation, which is not an expenditure but allowance which assessee had to claim compulsory under section 32, therefore, disallowance to that extent was not sustainable. Regarding other expenses, assessee had not discharged his onus by furnishing supporting vouchers/bills in respect of such expenses therefore, disallowance to the tune of 10% of all the other expenses, except depreciation, would meet the ends of justice.
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Business expenditure - Allowability - Non-furnishing of supporting vouchers - Assessee having claimed similar expenses in earlier years and AO not having pointed out specific defect
Assessee claimed expenses amounting to Rs. 70 lakhs. AO disallowed deduction on the ground that assessee failed to appear before AO to justify genuineness of the expenses. Held: Out of the expenses claimed by assessee, Rs. 23 lakhs pertained to depreciation, which is not an expenditure but allowance which assessee had to claim compulsory under section 32. Therefore, disallowance to that extent was not sustainable. Regarding other expenses, assessee had also claimed similar expenses in the immediate preceding year which were admitted by AO. Further, there is no provision under the Act to make disallowance on ad hoc basis without pointing out any specific defect in the claim of assessee. However, at the same time assessee had not discharged his onus by furnishing supporting vouchers/bills in respect of such expenses. Therefore, disallowance to the tune of 10% of all the other expenses except depreciation would meet the ends of justice.
REFERRED :
FAVOUR : Partly in assessee's favour.
A.Y. : 2012-13
INCOME TAX ACT, 1961
Section 68
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