Onus lies on AO to prove an expense as unreasonable or excessive to disallow same u/s 40A(2)(a)

0 comments Sunday, June 24, 2012
Delhi ITAT has held in DCIT vs Spark Hotels (P) Ltd. that the onus lies on the assessing officer to prove that an expenditure is excessive or unreasonable so as to disallow such expenditure u/s 40A(2)(a). Unless the AO brings on record any material to prove that an expenditure is excessive or unreasonable, no disallowance of such expenditure u/s 40A(2)(a) can be made.
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Exemption of small service provider is a statutory benefit must be available to ignorant assessee

Ahmedabad CESTAT has held in Jay Travels v Commissioner of Service Tax that  Benefit of small service provider's exemption under Notification No. 6/2005-ST, dated 1-3-2005 being a statutory benefit, should be considered by adjudicating authority. The Tribunal held that since the exemption of basic limit for small service provider is a statutory benefit, hence it is ought to be granted to the innocent person who did not raise the ground that his service charges were below the exempted limit for small service provide, before the lower authorities, hence the matter was remanded by the CESTAT to reconsider the issue a fresh.
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