TMI Blog2006 (3) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... that the AO made disallowance out of foreign tour expenses on the ground that these were either not fully supported by vouchers or were not incidental to the business of the assessee-company. 4. The assessee-company showed sales of Rs. 11.13 crores in the previous year. In the earlier year, the receipts of the assessee were only from jobwork to the extent of Rs. 1.03 crores. An expenditure of Rs. 14.92 lakhs was incurred on foreign tour, by its agents and dealers, undertaken to South-East Asian countries, as a part of incentive schemes for sales/purchases. 5. The assessee's case is that to achieve a target of Rs. 11.13 crores, these agents and dealers were instrumental. As per the incentive scheme, the achiever [of a particular goal] w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts. We are entirely in the agreement with the company, that it did spent and achieved the goals, and as a result sent some parties, as mentioned above, on foreign tour. We are also ready to accept that five persons, being employees of the assessee-company, including two of its directors, did accompany this group. But it is to be seen as to whether the expenditure incurred on the five persons [employees] of the company was for and only for the business purposes or an element of non-business purpose was also involved therein. In any case, the contention of the learned Authorised Representative that the assessee-company is the best judge of its affairs and is free to carry out its business in a way, which yields best results is well founded. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the letter of confirmation filed by M/s Rajender Textile Agency, dt. 5th March, 2001. is self explanatory. A copy of this letter is placed at page No. 20 of the assessee's paper book. The recipient has categorically stated that it has received a commission of Rs. 52,674 in relation to asst. yr. 1998-99 from Supreme Rayons (P) Ltd., Bhilwara. Copies of accounts of these years were also enclosed to support the confirmation of commission receipt. After going through the copies of account of Rajender Textile Agency in the accounts of the assessee's, for these years, placed at page Nos. 21, 22 and 23 of the assessee's paper book, we are convinced that the claim of the assessee is perfectly in order. The payment of commission stands duly proved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... letions are hereby confirmed by us. This leads to the dismissal of ground No. (1) of the Revenue's appeal. 17. In ground No. (2) the deletion of Rs. 4,29,523 added by the AO by disallowing the sales incentive paid to M/s Rajender Kumar, Kanpur, and Sharda Suiting, Bhilwara, is the subjection of appeal. 18. It seems that the learned CIT(A) has set aside the addition in respect to the above two parties, whose confirmations were not received by the AO. The learned CIT(A) has directed the AO to send intimations/details to the concerned AOs of these two concerns for getting the receipts verified and for taking necessary action, if warranted. In a way this order amounts to restoration of these additions for further verification and necessary ..... X X X X Extracts X X X X X X X X Extracts X X X X
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