Full News
CIT(A) justified in holding, audit fees, bank charges already been allowed by AO
CIT(A) justified in holding, audit fees, bank charges already been allowed by AO
"Assessee claimed exp. of Rs.4, 17,172. AO disallowed it to the extent of Rs.1,55,098/-, which are in respect of audit fees, bank charges. Other expenses were disallowed. On appeal CIT(A) confirmed it. On appeal ITAT held, CIT(A) was justified in holding that expenses like audit fees, bank charges etc. have already been allowed by AO. Thus, AO action was justifiable. Hence, CIT(A) order was just fair & reasonable & we uphold same."-500979
Facts in brief:
1. Assessee claimed the expenses of Rs.4, 17,172.
2. Assessing Officer disallowed only to the extent of Rs.1,55,098/-, which are in respect of audit fees, bank charges, courier charges etc. which were considered as expenses essential for running of the company.
3. The other expenses were disallowed on the basis that the assessee had only issued accommodation bills and hence the other expenses were not justified.
4. On appeal, CIT(A) confirmed the same by rightly observing that the Assessing Officer was justified in applying 2% profit rate on the bills raised and hence, there was no justification in allowing any other expenses.
On appeal ITAT held,
5. CIT(A) was justified in holding that the expenses like audit fees, bank charges etc. have already been allowed by the Assessing Officer.
6. Thus, correctly held that the action of the Assessing Officer was quite justifiable.
7. Under these facts and circumstances, we are not inclined to interfere with the order of the CIT(A) which is just fair and reasonable and we uphold the same.
8. In the result, the appeal filed by the assessee is dismissed.
Case Reference - Income Tax Appellate Tribunal - Ahmedabad Talent Infoway Ltd.,, Mumbai vs Assessee .
×
