Case Law Details
Dalia Investment Pvt. Ltd. Vs DCIT & Anr. (ITAT Kolkata)
Citation: Dalia Investment Pvt. Ltd. Vs DCIT &Anr. (ITAT Kolkata); ITA No.2818/Kol/2013 & ITA No.04/Kol/2014; 27/04/2018; 2006-07
Conclusion: Disallowance of miscellaneous expenditure was without application of mind by AO as disallowances of expenses cannot exceed the amount of actual expenses claimed by assessee.
Held: In the instant case, assessee had claimed miscellaneous expenses of Rs. 11,650 only whereas AO had disallowed entire miscellaneous expenses amounting to Rs. 3,05,43 8.00. It was held that disallowances made by the AO and subsequently partly confirmed by CIT(A) had been made without the application of mind as disallowances of the expenses cannot exceed the amount of actual expenses claimed by the assessee. Thus, AO was directed to delete the disallowance of expenses made by him.
FULL TEXT OF THE ITAT JUDGMENT
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