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2014 (2) TMI 746 - AT - Income TaxDisallowance of sales promotion expenses Held that:- The CIT(A) has confirmed the disallowance to the extent of Rs.2,51,259/- No evidence has been brought on record to show that the amount claimed to have been incurred through the Managing Director is supported by any evidence and what is the nature of expenditure in front of Tribunal there is no reason to interfere in the findings of CIT(A) - It was the duty of the assessee to bring the evidence on record regarding the expenses incurred along with the nature of such expenses. Mere this narration that cash paid to Managing Director as per supporting attached, without bringing any supporting on record, the expenses claimed cannot be allowed Decided against Assessee. Disallowance of Travelling expenses of MDs wife Held that:- Merely because Mrs. Kirti Sabharwal happens to be wife of the MD of the assessee company, the expenditure incurred on behalf of her cannot be disallowed when she had undertaken the tour of Singapore to attend the International Trade Fair 2003 - the expense incurred by MD is being allowed by the Assessing Officer the expenses incurred for the same purpose of another Director Mrs. Kirti Sabharwal cannot be disallowed Thus, the disallowance set aside - Decided in favour of Assessee. Adhoc disallowance of Running and Maintenance of Vehicles Legal & Professional Charges - Held that:- The order of the CIT(A) cannot be sustained - there was no force in this reasoning given by CIT(A) because the assessee is a private limited company - even if some expenditure is incurred for the personal benefit of the Director or employee of the company, then such expenses can be considered as perquisite in the hands of the concerned Director/employee but in the hands of the assessee company, the same is allowable as business expenditure - neither the Assessing Officer nor the learned CIT(A) has recorded any specific finding regarding any particular expenses being not for business purpose - The details of the expenses incurred are available and these are all small expenses paid to various advocates - without pointing out even a single expense of non business purpose, such ad hoc disallowance is not justified the disallowance is set aside - Decided in favour of Assessee.
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