TMI Blog2011 (1) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... ame for lack of supporting evidence - It is a fact that except filing month-wise details of expenditure and statements of accounts, the assessee also could not produce any evidence in support of the expenditure - disallowance is restricted to 10 per cent of the total expenses claimed - the appeal of the assessee is partly allowed - ITA NO. 463 (KOL.) OF 2010 - - - Dated:- 21-1-2011 - SHRI D.K. TYAGI, AND SHRI C.D. RAO, JJ Represented By: Shri Somnath Ghosh for the Appellant. Shri P.K. Mishra for the Respondent. D.K. Tyagi, This appeal filed by the assessee is directed against the order passed by the learned CIT(A), Kolkata dt. 25th Nov., 2005 for asst. yr. 2003-04 on the sole ground of confirming the disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... team members dispersed all over India, tours and travels at different places of the country were part of her activities in earning commission. He further submitted that the assessee had to organize meetings, conferences and to entertain the personnel deployed in the field for the purpose of keeping them updated on the duties to be carried out by them and to keep them on their toes with well known marketing strategy of keeping them in good working of mind by offering minimum entertainment. These exercises were necessary for motivating the team to function with maximum efficiency in discharging their tasks and the expenditures incurred on such arrangements were essential for the assessee's earning commission income from principal company. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an arbitrary manner. Referring to a comparative chart filed before us showing commission earned, expenses claimed etc. for immediately past two assessment years and subsequent assessment year, the learned counsel submitted that in all these years, the Department has accepted the results shown by the assessee and the expenses incurred in these years for earning commission income were in parity with the results of the assessment year under consideration. He also pointed out that the AO resorted to the ad hoc disallowance which is to the best of judgment but is not within the framework of law. He relied on the ratio in the case of CIT v. Laxminarain Badridas [1937] 5 ITR 170 (PC) and submitted that the AO ought to have considered the previous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sum of Rs. 20,11,930. According to the assessee, she had incurred total expenditure under various heads to the tune of Rs. 13,07,755, which were directly related to her earning of commission income and this has resulted in net commission income of Rs. 7,04,175 which was also not disputed by the AO. We further find that the ratio of net income during the year under consideration was in parity with the net income shown and accepted by the Revenue in past and subsequent years. Therefore, in our considered opinion, the authorities below did not dispute the heads of expenditure, but they merely doubted the quantum of the same for lack of supporting evidence. We also find that the assessee was not required to maintain accounts as per the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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