addition of EXp on Adhoc basis

This query is : Resolved

CA Manoj Pokharana (Querist)
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24 January 2011 assessee is in the nature of business/profession and claim certain expenses as business expenses (Conveyence , interest on car loan, petrol expenses etc. ) but the A.O. during assessement proceeding demanded detail the said details submitted on time to time basis but the A.o. has disallowed 10% of such expenses on adhoc basis as it involve the expenses of personal nature and disallowed 10 % of Expenses. can assesee file against the order of A.o. and allow the said expenses u/s 37(1) of the ACT ? Any CAselaw against the query ?????? please reply as soon as ??????

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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24 January 2011 If you feel that all the expenses fulfill all the condition of sec 37(1)that means there are no personal exp., you may go for appeal. In this case you may have to submit more detils.

CA Manoj Pokharana

CA Manoj Pokharana (Querist)
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24 January 2011 as in what more details to be submitted can u give me details of the requirement which to be submitted by the assessee ?

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Ratan Sharma

Ratan Sharma (Expert)
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24 January 2011 If the expenses are properly supported by the vouchers & bills then no addition can be made. There are various cases on this issue. The CIT Appeals will allow the case. No addition can be made on adhoc basis or without concrete proof in the hands of A.O. If the books are duly audited by C.A. then you have weightage in your favour. You will win in appeal.

Guest

Guest (Expert)

24 January 2011 As per tradition, 10% disallowance is reasonable. However, you can contest for the same.