Claim of Deduction on Freight Outward Expenses Allowable only on Submission of Actual Payment Details: ITAT [Read Order]
![Claim of Deduction on Freight Outward Expenses Allowable only on Submission of Actual Payment Details: ITAT [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/05/Claim-of-Deduction-Deduction-Freight-Outward-Expenses-Expenses-Actual-Payment-Details-Submission-of-Actual-Payment-Details-ITAT-Income-Tax-taxscan.jpg "Claim of Deduction on Freight Outward Expenses Allowable only on Submission of Actual Payment Details: ITAT [Read Order]")
The Pune Bench of Income Tax Appellate Tribunal (ITAT) has held that claim of deduction on freight outward expenses would be allowable only on submission of actual payment details. The AO requested the assessee, Nipro India Corporation Pvt. Ltd to furnish breakup of expenses shown under the heads Repairs and Maintenance, Freight forwarding, Miscellaneous Expenses and Sales Promotion in...
The Pune Bench of Income Tax Appellate Tribunal (ITAT) has held that claim of deduction on freight outward expenses would be allowable only on submission of actual payment details.
The AO requested the assessee, Nipro India Corporation Pvt. Ltd to furnish breakup of expenses shown under the heads Repairs and Maintenance, Freight forwarding, Miscellaneous Expenses and Sales Promotion in profit and loss account in the format.
The assessee furnished details of repairs and maintenance, freight forwarding, miscellaneous expenses and sales promotion expenses. Further, the assessee submitted the details relating to freight outward expenses to the Principal Commissioner of Income Tax (PCIT) under revision proceedings.
Kishor B. Phadke and Shishir Srivastava on behalf of the assessee submitted that the assessee was entitled to claim deduction under actual payment.
Shishir Srivastava, on behalf of the revenue vehemently argued the provision could not be allowed as deduction unless the assessee had shown the actual payment. He further submitted that the assessee was entitled to claim deduction under actual payment but no details were submitted by the assessee even before the PCIT claiming payments were made actually.
The two-member Bench of S.S. Viswanethra Ravi, (Judicial Member) and Dipak P. Ripote, (Accountant Member) upheld the order of Commissioner of Principal Commissioner of Income Tax Appeals (PCIT) as no details of payment were furnished by the assessee before the authority.
“We find the action of AO is neither a mistake on facts nor deviated from law. The said conclusion arrived by the AO on his satisfaction of details furnished by the assessee cannot be found to be erroneous simply because Pr. CIT does not feel satisfied with the said conclusion,” the Bench further observed.
To Read the full text of the Order CLICK HERE
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