No necessity to show expenses separately in the profit & loss account, when the expense is netted off against the relevant income

Last updated: 13 October 2020

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This Income Tax Appellate Tribunal case concerns whether businesses must separately disclose expenses in their profit and loss accounts if those expenses have already been offset against relevant income. The assessee appealed a decision confirming additions related to mall shopping festival expenses and parking fees paid to a landlord.

Court :
ITAT Bangalore

Brief :
The assessee has filed this appeal challenging the order dated 1.3.2018 passed by Ld. CIT(A), Bengaluru and it relates to assessment year 2014-15.

Citation :
ITA No.1689/Bang/2018

IN THE INCOME TAX APPELLATE TRIBUNAL
“C’’BENCH: BANGALORE
BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENTAND
SHRI B.R. BASKARAN, ACCOUTANT MEMBER

ITA No.1689/Bang/2018
Assessment Year: 2014-15

Prestige Amusements Private Ltd. The Falcon House No.1, Main Guard Cross Road Bangalore-560 001 PAN NO :AABCP6614R
APPELLANT

Vs.

Asst. Commissioner of Income Tax Circle-5(1)(2)Bangalore
RESPONDENT

Appellant by : Shri B.R. Sudheendra, A.R.
Respondent by : Smt. R. Premi, D.R.

Date of Hearing : 08.10.2020
Date of Pronouncement : 09.10.2020

O R D E R

PER B.R. BASKARAN, ACCOUNTANT MEMBER:

The assessee has filed this appeal challenging the order dated 1.3.2018 passed by Ld. CIT(A), Bengaluru and it relates to assessment year 2014-15.

2. The assessee is aggrieved by the decision of Ld. CIT(A) in confirming the addition of Rs.1,43,13,879/- relating to Mall shopping festival expenses and Rs.27,09,868/- relating to parking amount due to land lord.

FAQ :

Yes, the tribunal's decision implies that expenses can be netted off against relevant income in a profit and loss account, and may not need to be shown separately.

The main issue was whether the assessee was required to show certain expenses, like mall shopping festival costs and parking fees, separately in their profit and loss account, or if netting them off against income was sufficient.

The disputed expenses included Rs. 1,43,13,879/- for mall shopping festival expenses and Rs. 27,09,868/- for parking amounts due to the landlord.

This case relates to the assessment year 2014-15.