TMI Blog2011 (11) TMI 732X X X X Extracts X X X X X X X X Extracts X X X X ..... ade summarily without rejecting the books of account. 3. The brief facts relating to the issue are that during the year under consideration the assessee had received commission from BSNL on sale of mobile sim cards. The total commission received from BSNL was 1.57 crores. The assessee claims to have passed on about 80% of commission to retail customers by way of cash discount on sale value of mobile sim cards. The Assessing Officer on verification of the sale bills noted the commission to have been passed on vide cash sale vouchers and hence, not fully verifiable. The Assessing Officer disallowed ₹ 2 lacs out of commission paid. 4. Before the CIT (Appeals), the contention of the assessee was that the said commission was not pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sal of the evidence placed by the assessee in the Paper Book filed, we find that the assessee had purchased sim cards/recharge coupon from the BSNL. The copies of the bills of BSNL are enclosed at pages 257 to 391 of the Paper Book. The assessee has further enclosed the bills issued by it date-wise at pages 392 to 568 of the Paper Book. The said sales are affected by the assessee in cash and the net amount of the recharge coupon/sim cards have been charged by the assessee. The assessee has not paid commission in cash but has reduced the sale value of the sim card/invoice after deducting the commission. The assessee claims to have maintained stock register. 7. We find merit in the claim of assessee. In the entirety of the facts and circum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of personal use cannot be ruled out out of the aforesaid expenditure. However, we restrict the said disallowance for personal use to 1/10th of the total expenditure. Further the assessee had incurred entertainment and staff welfare expenses totaling ₹ 3,09,917/-, out of which ₹ 40, 000/- was disallowed. We find no merit in any disallowance being made out of staff welfare expenses of ₹ 1,61,730/-. However in respect of expenditure incurred on entertainment totaling ₹ 1,48,187/-, sum of ₹ 10,000/- is disallowed for personal use. Ground of appeal No.2 raised by the assessee is partly allowed. 12. In the result, the appeal of the assessee is partly allowed. Order pronounced in the open court on this 30th day ..... X X X X Extracts X X X X X X X X Extracts X X X X
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