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2018 (4) TMI 175 - AT - Income TaxDisallowance of Business Promotion Expenses - Held that:- AO has made disallowance without disputing the business promotion expenses, claimed by the assessee company, on estimation basis which is otherwise not permissible under law, particularly when expenditure which have admittedly been incurred through credit card. Moreover, ld. CIT (A) has rightly recorded the finding that the expenditure is less than 0.5% of the profit of the company and negligible as compared to the turnover of the business. So, we find no illegality or perversity in deletion of the business promotion expenses - Decided against revenue. Addition on account of foreign travel expenses - two staff members who have travelled were related to the Directors of the assessee company - Held that:- Merely because of the fact that such disallowance cannot be made merely on the ground that two of the staff members, who have travelled for business purpose, were related to Director of the assessee company, the same cannot be disallowed merely on the basis of estimation without going into the detail and purpose of expenses by the AO. So, we are of the considered view that ld. CIT (A) has merely restricted the addition to 50% instead of 25% made by the AO following his own order passed in AY 2008-09 in assessee’s own case which is stated to have not been challenged further. So, again, we find no illegality or perversity in the findings returned by the CIT (A). Ground determined against the Revenue. Income from undisclosed sources on sale of flat at Charmwood Village, Faridabad - Held that:- In the face of a specific document that when sale deed of the property in question has been registered in the name of a different company, namely, M/s. Quantum Vinimay Pvt. Ltd., the addition, if any, that can be made in the hands of M/s. Quantum Vinimay Pvt. Ltd.. CIT (A) after examining all these facts has corectly deleted the addition and finding no illegality or perversity in the impugned order, ground no.4 is also decided against the Revenue.
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