Case Law Details
DCIT Vs Curosis Healthcare Private Limited (ITAT Jaipur)
ITAT Jaipur held that revenue has simply disallowed the expenditure in view of CBDT Circular no. 05/2012 dated 01.08.2012 without establishing the violation thereof. Accordingly, disallowance merely on presumption and assumption is unsustainable in law.
Facts- The case of the assessee was re-opened and accordingly, notice u/s 148 of the Act had been issued. In response, the assessee filed submission stating that the assessee filed ROI against the notice u/s 148 of the Act declaring total income of Rs. 49,81,330/- and requested to furnish reasons recorded for issuing notice u/s 148 of the Act.
The reasons recorded for issuing notice u/s. 148 of the Act has been provided. Assessee filed objection against reasons recorded for re-opening the case. Accordingly, order against objections to issuance of notice u/s. 148 of the Act has been passed.
From the details so submitted, AO found that the assessee claimed sales promotion expenses of Rs. 1,58,54,254/- and debited the same in profit & loss account. AO noticed that in most of the case, the assessee could not produce bills/ vouchers of the sales promotion expenses so debited in profit & loss account.
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