Liability appearing in BS not attract section 41(1) and expenses on business promotion without supporting is disallowed subject to limit

Last updated: 22 November 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The Learned CIT(A) has erred in law, on facts and circumstances of the case in assuming jurisdiction for giving direction for disallowing expenditure in the year which was not before him such directions are beyond the scope of statutory powers of CIT(A). That the CIT(A) has grossly erred in law and on facts of the appellant’s case in holding that the amounts of outstanding creditors are taxable in the years in which the appellant had incurred these expenses. The learned CIT(A) has grossly erred in giving directions for re-opening the assessments u/s 150 of the Act, which are illegal and beyond the scope of his powers. That the CIT(A) had no material or reasons to allege that the credits represented `Bogus’ credits.”

Citation :
Eros City Developers Pvt. Ltd., S-1, American Plaza, International Trade Tower, Nehru Place, New Delhi. PAN: AAACB0929N (Appellant) Vs. Dy Commissioner of Income-tax, Central Circle 6, New Delhi.(Respondent)