Criteria for expense disallowance and depreciation disallowance under the Income Tax Act

Last updated: 09 June 2021

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Quick Summary

This Income Tax Appellate Tribunal ruling addresses expense and depreciation disallowances for an exporter. The Assessing Officer disallowed 15% of expenses like postage and travel due to insufficient evidence, and also disallowed depreciation on a car purchased in an employee's name. The CIT(A) reduced the expense disallowance to 10% but upheld the depreciation disallowance, stating the assessee failed to prove business use with evidence like a logbook, despite showing the purchase was made from their account.

Court :
ITAT Mumbai

Brief :
Aforesaid appeals by assessee for Assessment Years (AY) 2013-14 & 2014-15 contest ommon order of Learned Commissioner of Income-Tax (Appeals)-33, Mumbai [CIT(A)], dated 06/12/2018 qua confirmation of certain expense disallowance as well as depreciation disallowance. Both the appeals are recalled matter since the same were disposed-off by the Tribunal ex-parte qua the assessee vide order dated 13/03/2020. However, the assessee moved miscellaneous application and the order was recalled. Accordingly, the appeals have come up for fresh hearing before this bench.

Citation :
I.T.A. No.614/Mum/2019

Daily Limit Reached