Principal Commissioner of Income-tax-7 v. Japan International
[Citation -2017-LL-0808-8]
| Citation | 2017-LL-0808-8 |
|---|---|
| Appellant Name | Principal Commissioner of Income-tax-7 |
| Respondent Name | Japan International |
| Court | HIGH COURT OF GUJARAT AT AHMEDABAD |
| Relevant Act | Income-tax |
| Date of Order | 08/08/2017 |
| Judgment | View Judgment |
| Keyword Tags | ad hoc disallowance • question of law • oral order • manufacturing expense • disallowance of expenditure • production of evidence |
| Bot Summary: | Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal dated 09.12.2016 raising following questions for our consideration: A Whether the Appellate Tribunal is right in law and on facts in deleting disallowance of manufacturing expenses of Rs.40,41,029/ B Whether the Appellate Tribunal is right in law and on facts in deleting disallowance of Rs.23,23,256/ i.e. 10 out of aggregate manufacturing expenses of Rs.2,32,32,560/ C Whether the Appellate Tribunal has substantially erred in law and on facts in not considering relevant facts therefore perverse 2. Having heard learned counsel for the Revenue and Page 1 of 2 HC-NIC Page 1 of 2 Created On Mon Aug 14 09:54:30 IST 2017 O/TAXAP/518/2017 ORDER having perused the orders on record, we notice that the Revenue has disputed two additions of manufacturing expenses of Rs.40.41 lakhs and further manufacturing expenses of Rs.23.23 lakhs by way of ad hoc disallowance, which came to be deleted by the Commissioner of Income Tax and the Tribunal. The Appellate Commissioner and the Tribunal concurrently on facts held that the assessee had provided sufficient evidence to accept the expenditure. The payments were made through account payee cheques. Names, addresses, PAN and confirmation letters of the recipients were produced. |