ITAT deletes addition of credit card expenses incurred by director (Appellant) for Company

Shri Manish Kumar Vs ACIT  (ITAT Indore) Introduction: In the ongoing dispute between Shri Manish Kumar and ACIT, the ITAT Indore has recently ruled in favour of the appellant. The issue in contention involved the addition of Rs. 5,22,614/- by the AO, which was allegedly paid via credit card for non-business purposes. The ITAT ordered the entire disallowance be deleted after considering the appellant’s explanations and supporting evidence. Analysis: The tribunal’s verdict hinges on the contention that the credit card expenses were not personal but were indeed incurred for the busi...