Case Law Details
ACIT Vs Jasmine Buildtech (P) Ltd. (ITAT Delhi)
Question of disallowance under section 40A(3) of Income Tax Act, 1961 would not arise, where assessee had not claimed the payments as expenditure, while computing its business income. Assessee-Company bought the land on behalf of its group company and whatever payment was made to land owners or their relatives for purchase of land was debited to the account of said company. AO disallowed the said expenditure under section 40A(3). However, assessee submitted that no disallowance could be made by AO, being the said payments were reimbursements for purchase of land and was not claimed as expenditure. Section 40A(3) was wrongly invoked by AO, as no expenses relatable to the addition were claimed and the assessee had clearly demonstrated that the payments were reimbursement made by group company.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
These two appeals are filed by the Revenue and the assessee respectively challenging the order dated 18-12-2012 in Appeal No. 495/09-10/284 passed by the learned Commissioner (Appeals)-XXXIII, New Delhi (hereinafter for short called as the “learned Commissioner (Appeals)”).
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