271 (1)(c)

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juyalneha (Querist)
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07 January 2014 1/4th expense disallowed by the A.O.treating exp as of personal nature and levied penalty of concealment of income. is there is any case law on the same subject in favour of assessee?? also what is the name & no. of the section in which A.O.can disallow certain exp considering them to be of personal nature?? plzz reply explaining facts

Ankit

Ankit (Expert)
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07 January 2014 Dear Neha,

As per section 37, expenses of personal nature cannot be claimed as an expense.

since the common expenses such as telephone cannot be bifurcated, the officer usually makes an adhoc disallowance of 25-30% as being of personal in nature.

however, you can argue for your case and convince him that there are no expenses of personal nature and that everything is official in nature, and as such the full amount should be allowed

juyalneha

juyalneha (Querist)
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07 January 2014 but how to convince A.O??
Can we refer any case law in this matter?

juyalneha

juyalneha (Querist)
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07 January 2014 but how to convince A.O??
Can we refer any case law in this matter?

juyalneha

juyalneha (Querist)
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07 January 2014 any remedy is available in favour of assessee?

juyalneha

juyalneha (Querist)
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07 January 2014 but how to convince A.O??
Can we refer any case law in this matter?

juyalneha

juyalneha (Querist)
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07 January 2014 anyways thanks ankit..........

Ankit

Ankit (Expert)
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07 January 2014 no Neha...you will have to argue only...there is no case law on the matter

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juyalneha

juyalneha (Querist)
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08 January 2014 by disallowing any exp (personal exp)and imposing penalty u/s 271(1)(c)......whether any argue can be made in this case??

juyalneha

juyalneha (Querist)
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08 January 2014 AO disallowed exp,and client agreed to such disallowance subject to condition that penalty for concealment should not be imposed on it. but AO later made scn u/s 271(1)(c).

any remedy available for assessee??plz answer

Ankit

Ankit (Expert)
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08 January 2014 no...there is a case law...

i think of Reliance Petroleum..which says that mere disallowance cannot be said to be furnishing of inaccurate particulars of income

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