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| The Tax Publishers2020 TaxPub(DT) 5463 (Jp-Trib) INCOME TAX ACT, 1961
Section 243(3)
No specific instance of non-maintenance of voucher or personal use was pointed out by AO for sustenance of the disallowance out of profit and loss account. Therefore, disallowance of 50% of expenses in question on ad hoc basis without pointing out specific defect could not be upheld.
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Assessment - Ad hoc disallowance - No specific defect pointed out by AO -
Assessee claimed deduction of telephone, foreign tour expenses, vehicle related expenses (fuel, maintenance and depreciation), Diwali expenses, Office maintenance expenses, staff welfare expenses, etc. AO disallowed 50% thereof alleging personal element therein. Held: No specific instance of non-maintenance of voucher or personal use was pointed out by AO for sustenance of the disallowance out of profit and loss account. Therefore, disallowance of 50% of expenses in question on ad hoc basis without pointing out specific defect could not be upheld.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2005-06
INCOME TAX ACT, 1961
Section 69
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