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2013 (1) TMI 265 - AT - Income TaxAddition on account of foreign traveling expenses - A.Y. 2006-07 - Held that:- The assessee, for the first time, has taken a plea that these expenses were subject to FBT and there was payment on FBT also by the assessee and therefore, no further disallowance was called for placing reliance on unreported decision in the case of Hansraj Mathuradas (2012 (10) TMI 300 - ITAT, MUMBAI) however, copy of the same was not furnished. Therefore, the benefit of the decision cannot be given - matter restored back to the file of the A.O. for fresh adjudication - in favour of assessee by way of remand. Expenses incurred by the assessee on foreign travels of third party - Held that:- during the assessment year 2005-06 relief was given to the assessee by CIT(A) on the ground that assessee was able to make out a case that the persons who made foreign trips also conducted business on behalf of the assessee and therefore, restricted the disallowance of the foreign traveling expenses to 50% of the expenses claimed and that order of ld. CIT(A) was confirmed by the ITAT, however, in the year under consideration no such case was made out on behalf of the assessee that the persons who made foreign trips conducted business on behalf of the assessee and therefore, CIT(A) has categorically mentioned that the expenses incurred by the assessee on foreign travels of third party including sons and nephews of the partners were not incurred wholly and exclusively for the purpose of business and therefore he has confirmed the action of the A.O. in disallowing expenses of Rs.14,55,625/- - against assessee. Bifurcation of exhibition and advertisement expenses towards EOU units - Held that:- CIT(A) has confirmed the addition made during the year under appeal on the ground that assessee has not been able to produce any evidence in support of its contention that the expenditure was incurred only for the purpose of non- EOU division. There is no dispute about the fact that these expenses have been entirely debited to the non-EOU division. CIT(A), therefore, was of the view that these expenses have been debited to the non-EOU division to reduce its tax liability. Before us also the assessee has failed to substantiate its claim that this expenditure was incurred only for non-EOU division. Only general submissions have been made and in support of that submission no evidence whatsoever has been put on record - against assessee. Lumpsum addition out of factory expenses, sawing labour, postage and angadia expenses - Held that:- CIT(A) found that most of these expenses have been incurred in cash and were not supported by vouchers. Thus, these expenses, according to AO were not verifiable and he, therefore, disallowed 10% of these expenses amounting to Rs.4,69,474/- and added the same to the income of the assessee - no evidence was produced to interfere with the order passed by the CIT(A) - against assessee.
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