This is premium content. Please become a Premium member. If you are already a member, login here to access the full content.
Section 40A(2)(b) Addition allowed against Expense only & Not against Income
Case Law Details
- Case Name
- KEC Delco Dutsan (JV) Vs ITO (ITAT Delhi)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2015-16
- Courts
- All ITAT, ITAT Delhi
Upgrade to Basic or Premium to download.
Already Upgraded? Log in.
KEC Delco Dutsan (JV) Vs ITO (ITAT Delhi)
The issue under consideration is whether the addition made u/s 40A(2)(b) in case of estimation of income without doubting expenses incurred by assessee is justified in law?
ITAT states that, on going through the mandate of section 40A(2)(b), it is clear that the disallowance under this section is made in respect of the expenses incurred or payments made which are not deductible. This section has no application to income aspect of the assessee. As the AO has made disallowance u/s 40A(2)(b) in respect of income which the assessee in his opinion ought to ...
