Rent paid in Cash can’t be allowed as Business Expenses without Details: ITAT [Read Order]

Rent-Free Accommodation - Taxscan

The Income Tax Appellate Tribunal (ITAT), Mumbai bench has held that in order to get the deduction for rent paid in cash as business expenditure under the Income Tax Act, the assessee needs to produce the details of the premises.

The assessee claimed expenses of Rs. 54,000/- was paid and claimed as business expenses but no details as to premises and its use for business, payer/landlord and rent deed etc. where furnished by the assessee before lower authorities.

Denying relief to the assessee, the Tribunal held that “in our considered view, in the absence of details of premises taken on rent by the assessee and its user wholly and exclusively for business purposes, these expenses cannot be allowed as business deduction. The assessee has only submitted self-supporting vouchers with respect to the payment of  cash without any details as to the premises on which rent is paid and its use for business purposes and under these circumstances, we disallow the claim of the assessee and confirm additions to the tune of Rs. 54,000/- claimed to be incurred by the assessee for alleged rent of which no details are filed even before us.”

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