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2023 (1) TMI 822 - AT - Income TaxDisallowance of Interest - interest attributable to interest free advance made out of interest bearing funds of the company - AO interpreted that these amounts have been diverted by the company out of interest bearing funds for non business purposes - HELD THAT:- As brought to our notice that the issue has been decided in favour of the assessee for the AYs. 2006-07, 2007-08, 2008-09, 2009-10, 2010-11 [2016 (7) TMI 1669 - ITAT DELHI] 2011-12 [2019 (4) TMI 200 - ITAT DELHI], 2012-13 [2017 (10) TMI 1622 - ITAT DELHI], 2013-14 , 2014-15 [2020 (11) TMI 138 - ITAT DLEHI] and 2015-16 by the ld. CIT (Appeals), Rohtak and also upheld by the Co-ordinate Bench of ITAT for AYs. 2006-07, 2007-08, 2008-09, 200910, 2010-11, 2011-12 and 2012-13. Hence, we decline to interfere with the order of the ld. CIT(A) on this issue. Disallowance of Marriage Gift Expenses, Subscription Expenses, Advertisement Expenses in newspaper expenses under the head Advertisement and Sales Promotion Head, staff welfare Expenses under the head workers welfare, Foreign Travel Expenses - Issue decided in favour of assessee for the AY 2006-07, 2007-08, 2008-09, 2009- 10, 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 and 2015-16 by the ld. CIT (Appeal), Rohtak and also upheld by the Co-ordinate Bench of ITAT for AY 2006-07, 2007-08, 2008-09, 2009-10, 2010-11 [2016 (7) TMI 1669 - ITAT DELHI], 2011-12 [2019 (4) TMI 200 - ITAT DELHI] and 2012-13 [2017 (10) TMI 1622 - ITAT DELHI] Excess Depreciation - AO disallowed a sum being excess Depreciation claimed in original Return however the assessee has already revised its return and added back the same suo moto. Hence, we decline to interfere with the order of the ld. CIT(A) on this issue. Sales Promotion Expenses - Assessee company has over 4000 dealers nationwide along with various other worldwide buyers and company executives need to visit, entertain these dealers from time to time to keep them happy since companies products can only be sold through network of these dealers. It is essential need for the growth of the company and its survival through competition to be in constant touch with them so as to motivate them to achieve the desired sales. These gifts are distributed among dealers who are selling the product of the company and are its lifeline. A reasonable amount spent on distribution of some gifts to them certainly promotes goodwill and enhances business interests. The above payments are made as gifts to dealers and shagun on the marriage of dealers and staff which is an effective tool for Business promotion as well as staff welfare. The A.O has made this addition on ad-hoc and Lump sum basis. Thus the issue has been decided in favour of the assessee by the Coordinate Bench of ITAT for A.Y. 2012-13[2017 (10) TMI 1622 - ITAT DELHI] Nature of expenses - Glow Sign Board Expenses - This issue stands squarely covered by the order of the Tribunal in the previous year wherein it was treated that since the “glow sign boards” are not owned by the assessee they cannot be treated as capital expenditure. Hence, we decline to interfere with the order of the ld. CIT(A) on this issue. Wine & Beer Expenses - These expenses are not required for conducting of business and it can be held that failure to offer wine & beer would in any way impede the business operations of the assessee and they cannot be treated as allowable expenses u/s 37(1) of the I.T. Act. Appeals of the revenue are dismissed.
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