Lira Goswami vs. ACIT (ITAT Delhi) |
While computing the tax liability of an assessee the AO is obliged to compute the correct income of the assessee. Once in substance he is in agreement that the expenditure has been incurred for earning the professional income, no disallowances is sustainable in law. Nowhere the AO has doubted that the expenditure claimed as deduction has been incurred by the assessee. In alleging that the expenditure has been deducted in computing the income from other sources, the AO has ignored the fact that in the return of income, the gross amount of interest income, without any deduction, has been shown under the head “income from other sources” and the income under the head “profits and gains of business or profession” has been shown in the tax return on net basis after deducting the expenditure incurred |
Thursday 20 September 2012
If there is no doubt that expenditure has been incurred, disallowance is not sustainable
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