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2020 (11) TMI 138 - ITAT DLEHIInterest attributable to advance made - AO has disallowed the interest as interest attributable at 12% which was advanced to Sh. Arun Kumar out of interest bearing funds, of the company - HELD THAT:- CIT (Appeals) has given a clear finding that this sum was advanced interest-free as Mr. Arun Kapur is the son of founder of the company and besides that in the past assessment years also the same has been allowed by the Revenue. Therefore, ground No. 1 of the Revenue’s appeal is dismissed. Addition under the sub-head marriage gift, subscription expenses for various clubs, consultancy expenses and expenses incurred in advertisement in Hindustan Times on the anniversary of Late Shri Jai Dev Kapur - business or personal in nature - HELD THAT:- These expenses have been claimed in the past and there is no fresh finding given by the Revenue during the assessment proceedings as well as the appellate proceedings as to why these expenses should not be allowed. The assessee has produced the evidences before the Revenue authorities and established the claim for these expenses. Hence, ground No. 2 of Revenue’s appeal is dismissed. Addition under the head glow shine board expenses - Since the normal life of three years and expenses incurred are debited during the year under consideration are not allowable - HELD THAT:- Regarding capitalization of glow shine boards expenses, the assessee has given all the details before the Assessing Officer. There was a clear finding by the CIT (Appeals) that the glow shine boards were not owned by the assessee as the company had charged some amount from dealers against supply of these glow shine boards. Besides this, in the earlier assessments also these expenses were allowed by the Revenue. Hence ground No. 3 of the Revenue’s appeal is dismissed. Addition under the head entertainment & Beer expenses, prize and rewards, sale promotion and staff welfare - All these expenses are un-vouched and for which no bills were furnished - HELD THAT:- The assessee company has given the details of these business expediency related to these expenses and demonstrated before the Assessing Officer as well as CIT (Appeals) about the genuinity of these expenses. In the past also these expenses were allowed by the Revenue. Hence, ground No. 4 of the Revenue’s appeal is dismissed. Addition of foreign travel expenses - DR submitted that as most of the foreign expenses are in connection of Kapur family, who are the top management and not related to the company, therefore, the CIT (Appeals) did not establish that these expenses were for business purposes - HELD THAT:- These expenses were demonstrated before the Assessing Officer as well as CIT (Appeals) by the assessee in detail by submitting supporting evidences. And after going through the said evidences, the CIT (Appeals) has given a categorical finding that these foreign trips were for the business purpose only. Hence ground No. 5 of the Revenue’s appeal is dismissed.
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