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2012 (8) TMI 95 - AT - Income TaxAddition made on account of disallowance of Sales promotion expenses - expenditure with respect to the gold chains being distributed - CIT(A) deleted the addition - Held that:- The assessee has given full details of expenses of the gold chain incurred to get the more business and attract the customers - appellant had completed successful seven years of business and on such occasion, he had distributed the gold chain for their operation in business in past and future - A.O. had allowed similar expenses in case of 65 dealers therefore, this expense is for business expediency as sale promotion expenses - confirm the order of the CIT(A) and dismiss the Revenue’s appeal - in favour of assessee. Disallowance of interest - CIT(A) deleted the it - Held that:- The assessee had interest free fund in form of capital of Rs.26,31,523 and the opening balance of assessee's sister concern was 38,91,635 in which appellant was working on commission basis concern - The concern has paid commission to the appellant and at the same time the sum was reduced from the advances account. The actual amount would be much lower. There was no direct nexus has been established by A.O. between interest bearing fund to interest free advances - as there is no leakage of Revenue thus confirmation of the order of the CIT(A) and dismiss the appeal of revenue - in favour of assessee.
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