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2012 (7) TMI 727 - ITAT, DELHIAddition on account of the expenses not being wholly and exclusively for the purpose of the business of the assessee - assessee did not furnish any evidence nor established the commercial expediency of various expenses ,including mess subsidy, marriage gifts & other welfare expenses referred to in the assessment order - whether the expenses on marriage gifts and other expenses were incurred wholly and exclusively for the purpose of business of the assessee - AR did not even whisper before us as to how gifts made on marriage of employees or their relations, were commercially expedient in the business of the assessee nor brought to our notice any contrary decision – Held that:- Expenditure on gifts made on the occasion of marriages in the families of employees cannot qualify as business expenditure, especially when no evidence has been placed before us or even the lower authorities nor any argument has been made as to how the said expenditure was incurred as a matter of commercial expediency – Against assessee As regards other expenses, towards mess subsidy, sports & games or other welfare expenses – Held that:- CIT(A) has not recorded any findings as to the nature of these expenses nor even the AO analysed the nature of these expenses - matter remanded to CIT(A) Disallowance of employees share towards provident fund - CIT(A) allowed the claim of the assessee on account of employees’ contribution towards PF in the light of decision of Hon’ble Supreme Court in the case Vinay Cement Ltd. (2007 (3) TMI 346 (SC)) - assessee, while computing its total income added back the said amount – Held that:- Matter remanded back to the file of the AO with the directions to ascertain as to whether or not the aforesaid amounts were paid on or before the due date of filing of return u/s 139(1) of the Act Service tax respectively u/s 43B of the Act - service tax payment was allowed on the ground that amount had been paid before the due date of filing of return - assessee, while computing its total income added back the said amount - Held that:- Matter remanded back to the file of the AO with the directions to ascertain as to whether or not the aforesaid amounts were paid on or before the due date of filing of return u/s 139(1) of the Act
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