Pr. Commissioner Of Income Tax - 6 v. Jagdish Process House

C/TAXAP/15/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL NO. 15 of 2018 ========================================================== PR. COMMISSIONER OF INCOME TAX - 6,VersusJAGDISH PROCESS HOUSE, ==========================================================Appearance: MRS MAUNA M BHATT for the PETITIONER(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE AKIL KURESHIand HONOURABLE MR.JUSTICE B.N. KARIA Date : 26/02/2018 ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1.Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal dated 13.07.2017 raising following question for our consideration: “Whether The Appellate Tribunal has erred in law and on facts in deleting the addition on account of disallowance of expenses u/s.40A(2)(b) of the Act by not appreciating the fact that the alleged reimbursement of expenses are nothing but payments to the sister concerns by way of book adjustments and no credible evidences was submitted to prove that actual expenses having been incurred?” 2.Issue pertains to disallowance made by the Assessing Officer under Section 40A(2)(b) of the Income Tax Act, 1961, of the part of the payments made by the assessee holding that the same were made C/TAXAP/15/2018 ORDER to sister concerns and were excessive in nature. Commissioner of Income Tax (Appeals) and the Tribunal analyzed the expenditure and the statutory provision concerned and found in the matter of fact that the requirements of the said provision were not fulfilled. 3.No question of law arises. Tax Appeal is dismissed. (AKIL KURESHI, J.) ANKIT SHAH (B.N. KARIA, J.)