This month Income Tax appellate Tribunal Delhi branch held that the assessee failed to provide call log details to verify the claim under the provision of Income Tax Act 1961 hence disallowing telephone expenditure claimed as business expenditure.
Brief facts of the case are that an Ad-Hoc addition of 4,00,000 rupees was made by the assessing officer in the assessment order. the assessee here has challenged the ad hoc addition made by the Assessing Officer (AO) and has stated that the amount claimed under the expenses was neither fully vouchered nor verified, so it cannot be said that the amounts are wholly and exclusively incurred for the purpose of business. The assessing officer further observed that the assessee could not provide call log details in case of Telephone bill expenses.
The assessee preferred an appeal before the Commissioner of Income Tax. The Commissioner of Income Tax (CIT) affirmed the said addition made by AO.
The Assessee, being agreed Assessee preferred an appeal before Tribunal. Tribunal upheld the disallowance and said they do not find any reason and/or material to controvert the findings of the authorities.
Bistro Hospitality Pvt. Ltd vs ACIT
ITA No. 4340/Del/2019
Decision in favour of: Revenue
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’ NEW DLEHI