Latest Income-Tax Details

For Full Access To All Latest Judgments on Income Tax
Click Here To Subscribe Now
Take a tour of our Income-Tax Library

The facts are that the AO after perusal of the financial accounts noted that the assessee had claimed expenditure of Rs. 1,65,308/- towards puja expenses. According to him, the expenses are incurred in cash and since no supporting documents could be produced, he disallowed the entire amount. Aggrieved, assessee preferred an appeal before the Ld. CIT(A) who confirmed the action of the AO by noting that the assessee did not produce any vouchers and the expenses incurred are in cash. According to him, the two ledgers which were produced shows monthly expenses of puja and, therefore, Ld. CIT(A) observed that since it is not clear whether there is a temple inside the business premises on which expenses have been incurred it cannot be held that these expenses were only for the purpose of the business of the assessee and, therefore, he disallowed the same. Aggrieved, the assessee is before Tribunal.

Shanti Prime Publication Pvt. Ltd.

Sec. 37 of Income Tax Act, 1961—Business Expenditure— Expenses incurred by the assessee for puja is for the smooth functioning of the business of transport and cannot be disallowed since it has been found that the expenses incurred are for the smooth functioning of the business of plying trucks, the expenses need to be allowed, however, taking into consideration, 10% of the expenses may be disallowed for plugging the revenue loss if any and the balance amount is directed to be deleted. - CAPITAL TOURS (INDIA) P. LTD. V/s ITO - [2020] 82 ITR (TRIB) 229 (ITAT-KOLKATA)