Case Law Details
Thermon Heat Tracers Pvt. Ltd. Vs JCIT (ITAT Pune)
ITAT held that miscellaneous expenses Paid Through Cheques Based On Self-Made Voucher Allowable for the purpose of business are allowable.
Admittedly, the majority of details regarding these expenditures were filed by the assessee during the course of First Appellate proceedings as additional evidences. The CIT(A) also basing on the remand report considered the issue and gave part relief to the assessee. In the remand report which is reproduced at Page Nos. 3 and 4 of the impugned order, we note that the AO held bills were not produced for a sum of Rs.89,566/-and self made vouchers furnished regarding the expenditure of Rs.1,15,872/-. Therefore, according to the AO in the remand report and the CIT(A) in his consideration held the amount concerning the above said two amounts were not supported by the necessary bills. Regarding the self made vouchers of Rs.1,15,872/-, we observe that the said payments were made through cheques for car hire charges, small conferences and to the staff for the expenditure incurred thereon for picnic etc. The facts remained admitted no cash payments were made by the assessee regarding these expenses. The only contention raised by the ld. DR that no supporting necessary bills were submitted and the assessee is not entitled to claim deduction in that regard. We note that as submitted by the ld. AR that all these expenses were incurred for staff during the course of business and all were paid through cheques. We note that all these petty expenses were paid through cheque and the AO did not point out any of such expenses were incurred for personal gain, therefore, we find force in the arguments of ld. AR that all these expenses under head miscellaneous expenses as confirmed by the CIT(A) incurred for the purpose of business and therefore, the assessee is entitled to claim as deduction.
FULL TEXT OF THE ORDER OF ITAT PUNE
This appeal by the assessee against the order dated 11-07-2019 passed by the Commissioner of Income Tax (Appeals)-5, Pune [‘CIT(A)’] for assessment year 2009-10.
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