Venkata Suryanarayana Mandava vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Venkata Suryanarayana Mandava, appealed against an order passed by the Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre (NFAC), Delhi. The appeal was regarding the expenditure incurred by utilizing a credit card and the mode of repayment thereof. The assessee claimed that the credit card was used for his proprietary business and for making online payments on behalf of a company, in which he is a Director. The assessee incurred Rs.1,62,887/- towards business purpose, travelling, hotel, etc., and Rs.2,46,505/- towards repayment of a loan taken on a City bank credit card. The Commissioner of Income Tax (Appeals) accepted these two counts and gave relief. However, regarding Rs.22,24,093/- expenditure met by utilizing the credit card, it was for e-procurement fees to the Karnataka Government to meet the shortfall in the business of the assessee. The Commissioner of Income Tax (Appeals) declined to interfere with this expenditure stating that there was no clear explanation. The assessee submitted that all this expenditure is reflected in the books of the assessee and also repayment made by using the ATM channel of payments.…

Legal Issues

• 1. Expenditure incurred by utilizing credit card and the mode of repayment thereof.

Judgment Outcome

Decided in favour of Assessee.

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