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| The Tax Publishers2020 TaxPub(DT) 2519 (Hyd-Trib) INCOME TAX ACT, 1961
Section 37(1)
Where there was scope for conveyance expenditure being incurred for personal purposes which was embedded in the total claim of conveyance expenditure and assessee had not furnished proper explanation before CIT(A), however, disallowance of 20% of the total claim of conveyance expenses would be on the higher side and accordingly the disallowance of conveyance expenditure at 15% was sustained.
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Business expenditure - Conveyance expenses - Personal element -
Assessee was engaged in the business of providing Security Services. AO observed that assessee had claimed conveyance expenses. Since proper explanation was not provided by assessee AO opined that certain amount would have been incurred for personal purposes and therefore disallowed the same. Held: There was scope for conveyance expenditure being incurred for personal purposes which was embedded in the total claim of conveyance expenditure. Assessee had also not furnished proper explanation before CIT(A), therefore, he confirmed the order of AO. However, disallowance of 20% of the total claim of conveyance expenses would be on the higher side and accordingly sustaining the disallowance of conveyance expenditure at 15% of the total claim of conveyance expenditure which worked out to be approximately Rs. 14,000.
REFERRED :
FAVOUR : Partly in assessee's favour
A.Y. : 2009-10
INCOME TAX ACT, 1961
Section 23
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