Case Law Details
Dell International Services India Private Limited Vs JCIT (ITAT Bangalore)
The ld. DR submitted that during the assessment proceedings, the AO noted that expenditure incurred on account of travelling and conveyance was Rs. 13,49,73,565, whereas the amount debited to P&L account was Rs. 13,34,17,000 which resulted in excess payment of Rs. 15,56,565/-. The assessee failed to furnish any satisfactory explanation for the difference. Hence this expenditure of Rs. 15,56,565/- was rightly considered as unexplained expenditure u/s. 69C of the Act and added back.
The ld. AR submitted that the difference between amount debited as travelling & conveyance and the amount as per the party-wise break-up submitted amounting to Rs. 15,56,565 represents an amount initially debited under repairs and maintenance and subsequently reclassified under other heads of expense in the Profit and Loss account or amount subsequently reversed. The ld AR further submitted that the entire amount for which the break-up has been submitted is debited to the Profit and Loss account and accounted in the regular books of accounts, the same cannot be disallowed under Section 69C as the source for the said expenditure is automatically explained. Reliance was placed on CIT vs. Radhika Creations [Reported in [2011] 10 taxmann.com 138 (Delhi).
We have considered the rival submissions and perused the material on record. We notice that the assessee has submitted the party wise breakup of the expenses and has submitted that the difference in the amount as per breakup and the amount as per profit and loss account is due to the amounts being debited to other line items in the profit and loss account or subsequent reversal. The submission that the entire amount is debited to the Profit and Loss account and accounted in the regular books of accounts, the same cannot be disallowed under Section 69C has merits as the source for the said expenditure is automatically explained. In our considered view the DRP has rightly considered the submissions and deleted the additions and we see no reason to interfere with the same.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
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