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| The Tax Publishers2020 TaxPub(DT) 1367 (Mum-Trib) INCOME TAX ACT, 1961
Section 37(1)
Disallowance of outstanding liability of 'gift vouchers' in case of assessee was supposed to be restricted only to the extent same were found to be more than 3 years old. Accordingly, AO was directed to work out value of 'gift vouchers' outstanding for more than 3 years on the basis of working of details of 'gift vouchers' to be furnished by assessee.
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Business expednditure - Allowability - Outstanding liability on account of gift vouchers -
Assessee running a chain of departmental stores and dealing in a variety of both branded and unbranded products claimed deduction on account of outstanding liability of gift vouchers as on 31-3-2010. AO disallowed 20% out of outsanding liability of gift vouchers. CIT(A) enhanced disallowance to entire amount of outstanding liability.Held: Disallowance of outstanding liability of 'gift vouchers' in case of assessee was supposed to be restricted only to the extent same were found to be more than 3 years old. Accordingly, AO was directed to work out value of 'gift vouchers' outstanding for more than 3 years on the basis of working of details of 'gift vouchers' to be furnished by assessee.
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2010-11
IN THE ITAT, MUMBAI BENCH
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