HITESH SHAMJIBHAI KATARIA,JAMNAGAR. vs. INCOME TAX OFFICER, WARD-3(1), JAMNAGAR.

ITA 370/RJT/2018Status: DisposedITAT Rajkot25 June 2019AY 2014-1512 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal partly allowed the appeal, restricting the disallowance of expenses with defective vouchers to approximately 10% of the disallowed amount, considering the business turnover and prior year allowances.

What were the facts?

The assessee paid commission to employees who were relatives, and the AO disallowed it under Section 40A(2)(b) alleging it was to distribute income. The assessee also had expenses with handmade vouchers, which the AO disallowed.

What were the issues?

Whether commission paid to relatives is an allowable business expense, and whether expenses with handmade vouchers are deductible.

Which sections of the Income-tax Act were involved?

Section 40A(2)(b),Section 143(3)

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Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

Before: SHRI WASEEM AHMED

For Appellant: Shri Chetan L. Agarwal, AR
Hearing: 17/06/2019Pronounced: 25/06/2019

PER WASEEM AHMED, ACCOUNTANT MEMBER:

The captioned appeal has been filed at the instance of the Assessee against the order of the Learned Commissioner of Income Tax (Appeals), Jamnagar [Ld.CIT(A) in short] dated 02.08.2018 arising in the matter of assessment order passed under s. 143(3) of the Income Tax Act, 1961 (here- in-after referred to as "the Act") dated 09/12/2016 relevant to Assessment Years (A.Y) 2014-2015. Asstt. Year 2014-15 2

The assessee has raised the following grounds of appeal: Th

The order continues below.

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