Expenses not related to business or related to exempted income cannot be allowed under Sec 115WE subject to the condition subject to the condition under Rule 8D

Last updated: 23 April 2012

Court :
Income Tax Appeallate Tribunal

Brief :
The first issue in this appeal of assessee is against the order of CIT(A) confirming the disallowance of travelling expenses by treating the same as not being business expenses even though the Fringe Benefit Tax (FBT) liability was worked out u/s. 115WE(3) of the Act by Assessing Officer. For this, assessee has raised following ground no.1: “1. For that the Ld. CIT(A) erred in holding that Travelling expenses incurred by the appellant were not business expenses and in that view of the matter in confirming the disallowance of the same even though tax liability was worked out u/s. 115WE(3) by the A.O.”

Citation :
M/s. MBSK Finvest Pvt. Ltd. (PAN: AADCM1373J)(Appellant) Vs. Income-tax Officer, Wd-3(3), Kolkata (Respondent)