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2018 (3) TMI 475 - AT - Income TaxDisallowance of advertisement and publicity expenses - Held that:- The genuineness of the expenditure incurred by the assessee has not been disputed by the Revenue. We find that the intention of the assessee doctor in the instant case is apparently to prevent disease in future by making public awareness. Such a proactive measure taken by the person like assessee should be rather welcomed than to criticize. We hold that the expenditure incurred in the sum of ₹ 202014/- deserves to be allowed as business expenditure of the assessee u/s 37(1). Disallowance of purchase of gift items incurred through credit card - Held that:- We find that the purchase of gift items were incurred for handing over to various super specialists who had participated in the seminar organized by the assessee for the purpose of updation of knowledge thereon. This, in our considered opinion, is an expenditure incurred for the purpose of profession of the assessee. We also find that the assessee had given reasonable explanation as to why he had presented gift items to various doctors in lieu of payment of fee. The explanation given is very logical. We hold that the expenditure in the sum of ₹ 90,850/- would have to be allowed as a deduction u/s 37 of the Act Disallowance of Entertainment Expenses - Held that:- We find that the entertainment expenses of ₹ 11,096/- incurred by the assessee were only for the purpose of dinner while holding meetings with his seniors in hotels for skill upgradation. This would be squarely allowable as business expenditure. It is not the case of the ld. AO that the same are not supported by any bills or vouchers. Accordingly, the same is allowed as deduction u/s 37. Disallowance of travelling expenses - Held that:- We find that the assessee has only made oral submissions to justify his claim and had not produced any evidence in support of his claim of visiting U.K., London for the purpose of medical conference and meeting senior doctors thereon in order to get himself updated and improve his skill. Hence, we hold that the revenue had rightly disallowed the said expenditure in the assessment. Disallowance of meeting and seminar expenses - Held that:- It is not in dispute that the assessee is a member of Calcutta Club and Bengal Club. From the details submitted before the ld. AO, it was found that these expenses are incurred towards monthly subscription of club bills and for meager portion towards meeting expenses of doctors on certain occasions. In our considered opinion these expenses are wholly and exclusively meant for the purpose of business and are squarely allowable as deduction u/s 37(1) of the Act. Disallowance of car repair expenses - Held that:- We find that the assessee is a doctor by profession and runs a clinic. It is not in dispute that the assessee maintains three cars to support his profession as well as his clinical establishments. The ld. AO had allowed depreciation on these cars in the assessment and hence in our considered opinion, there is no reason to disbelieve the car maintenance expenses. Admittedly, the assessee has not produced bills and vouchers for the aforesaid maintenance expenses. But the usage of these cars for the purpose of business or profession is not in dispute in the instant case. Hence, in our considered opinion, disallowance of ₹ 80,000/- towards the same would meet the ends of justice.
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