9911796707
TMI Blog2012 (6) TMI 590X X X X Extracts X X X X X X X X Extracts X X X X ..... by ignoring and not considering the relevant material recorded and found by the Commissioner of Income-tax (Appeals) in his appellate orders and/or are otherwise unreasonable, arbitrary and perverse ?" 2. No one appears for the respondent despite service. We, however, got the advantage of assistance of Dr. Pal appearing for the appellant. 3. The short fact is that the appellant has been and still is carrying on pur- chasing and selling and/or otherwise dealing in tea and tea products. While carrying on such business the appellant adopts various methods of pro- motion of sale of their products. In doing so, the appellant had adopted a policy to augment the sale and for the growth of their business to woo the customers distributing the gift ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were not utilised nor dis- tributed for business promotion. Therefore, the Assessing Officer should have allowed the entire amount to be deductible under the head of busi- ness expenditure. Dr. Pal submits that on principle the business expediency of these expenses have been recognised otherwise 50 per cent. benefit could not have been given. 7. Therefore, the learned Tribunal erred in law while upholding the judg- ment and order of the Commissioner of Income-tax (Appeals). 8. He contends that the reasons recorded by the Tribunal that on earlier occasion on the self-same facts and circumstances 50 per cent. disallow- ance of the business expenditure on account of purchase of gift articles was disallowed and the same has been accepted foll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount of expenditure, and if has to be adjudged from the viewpoint of the businessman not that of the Income-tax Department. In support of his submission, he has relied on a decision of the Supreme Court in the case of (J. K. Woollen Manufacturers v. CIT reported in [1969] 72 ITR 612 (SC)). The similar principle on the question of testing the busi- ness expediency has been reiterated by a fairly recent decision of the Supreme Court in the case of (S. A. Builders Ltd. v. CIT (Appeals) reported in [2007] 288 ITR 1 (SC)). 10. We have considered the submissions and gone through the citations noted above and it appears that the authorities had understood the com- mercial expediency for incurring the expenses on account of the assessee's b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame were utilised for promotion and growth of business so as to bring the deduction under the head of business expenditure. 14. In view of the aforesaid factual position it cannot be said that the facts and circumstances in the subsequent year is similar to that of the earlier year. Admittedly, as correctly pointed out by Dr. Pal the evidence were produced before all the authorities and indeed the Commissioner of Income-tax (Appeals) very carefully and elaborately dealt with the aspect of the evidence and found that there has been sufficient proof that the gift articles were purchased and the same were sent to depots of the appellant at various places and the depot registers are maintained. Payments to the supplier were made by account pay ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
