Assessee failed to provide Call Log Details to prove Telephone Expenses: ITAT upholds Disallowance [Read Order]

The Income Tax Appellate Tribunal (ITAT), Delhi bench has upheld an order disallowing telephone expenses claimed as business expenditure by on the ground that the assessee failed to provide call log details to verify the claim under the provisions of the Income Tax Act, 1961.

The assessee, M/s Bistro Hospitality Pvt Ltd, has challenged the adhoc addition of Rs. 4,00,000/- made by Assessing Officer in the Assessment order observing that the amounts claimed under the expenses are neither fully vouched nor fully verifiable, so it cannot be said that the same are wholly and exclusively incurred for the purpose of business. The Assessing Officer further observed that the Assessee could not provide call log details in the case of telephone expenses.

On appeal, the first appellate authority confirmed the said disallowance by holding that expenditure claimed on five expenses is of Rs.2,83,47,620/- and disallowance due to un-verifiability is of Rs.4,00,000/- which is 1.41%, which is very reasonable and not capricious.

The Tribunal bench comprising Shri N.K. Billaiya, Accountant Member and Shri N.K. Choudhry, Judicial Member observed that “the Ld. Commissioner has passed the reasoned, logical and reasonable order for just decision of the case, after considering the peculiar facts and circumstances of the case, the submissions of the Assessee and determination made by the AO, even otherwise we do not find any reason and/or material to controvert the findings of the authorities below. Thus, the addition under challenge is sustained.”

Shri Zahid Parvez, Sr. DR, appeared for the department.

To Read the full text of the Order CLICK HERE

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