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Facts
The assessee filed its return of income declaring a loss. The Assessing Officer (AO) disallowed a portion of the travelling and conveyance expenses for want of vouchers. The Commissioner of Income-tax (Appeals) upheld the AO's order.
Held
The Tribunal noted that the assessee had submitted details regarding travel expenses. The assessee's representative fairly agreed to a disallowance of 5% on the disputed amount. The Tribunal agreed with this submission.
Key Issues
Whether the disallowance of travelling and conveyance expenses made by the lower authorities was justified?
Sections Cited
Section 37(1) of the Income Tax Act, 1961 (implied)
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Income Tax Appellate Tribunal, DELHI BENCH ‘F’, NEW DELHI
Before: Sh. C. N. PrasadDr. B. R. R. Kumar
ORDER
Per Dr. B. R. R. Kumar, Accountant Member:
The present appeal has been filed by the assessee against the order of National Faceless Appeal Centre (NFAC), Delhi dated 13.03.2023.
Following grounds have been raised by the assessee:
“1. That the Ld. Assessing Officer and the honourable Commissioner of Income-tax (Appeals) is unjustified in making an addition of Rs. 18,39,449/- on account of the disallowance of Travelling and conveyance expenses and Miscellaneous expenses. The addition made by the Ld. Assessing Officer and upheld by the honourable Commissioner of Income-tax (Appeals) is not justified and warranted in the case of the appellant.”
PDS Ltd. 3. The assessee filed return of income declaring loss of Rs.3,85,71,158/- which has been assessed at loss of Rs.3,66,86,204/- after disallowing expenses on account of travelling and conveyance expenses of Rs.18,37,315/- being 30% of the amount of Rs.61,24,385/- in the absence of vouchers and other supporting evidences.
Aggrieved, the assessee filed appeal before the ld. CIT(A) who affirmed the order of the Assessing Officer.
Aggrieved, the assessee filed appeal before the ITAT.
During the hearing before us, the assessee has submitted compilation consisting of 42 pages with regard to travel expenses and paid to tour & travel operators.
The ld. AR submitted that though all the details have been furnished, some vouchers could not be made available before the revenue authorities and fairly agreed for disallowance @ 5% on the amount of Rs.61,24,385/-.
The ld. DR relied on the order of the ld. CIT(A).
On going through the entire details and keeping in view the tax implication, we agree with the ld. AR’s submission and direct that the disallowance be computed @ 5% on the amount of Rs.61,24,385/-.
PDS Ltd. 10. In the result, the appeal of the assessee is allowed for statistical purpose. Order Pronounced in the Open Court on 05/01/2024.