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The Tax PublishersITA No. 31/Jab/2019
2020 TaxPub(DT) 5021 (Jab-Trib)INCOME TAX ACT, 1961
Section 37(1)
Disallowance of travel expenditure on the ground that the said expenditure was not fully supported by proper bills and vouchers could not be sustained as each and every expense item was entered in books of account and were also produced in the assessment proceedings and test checked.
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Business expenditure - Allowability - Travel expenditure -
AO made disallowance being ten per cent of the claim in respect of travel expenditure under section 37(1) on the ground that the expenditure was not fully supported by proper bills and vouchers and, besides, travel for personal purposes could not be ruled out. Held: Full travel particulars of each and every expense item was entered in books of account. These details were also produced in the assessment proceedings and test checked. Not a single instance of either absence of voucher, or of it being for personal (non-business) purpose has been stated. Thus, Ad hoc disallowance on presumptive basis could not hold good in law.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2015-16
INCOME TAX ACT 1961
Section 37(1)
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