TMI Blog2012 (7) TMI 727X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee nor brought to our notice any contrary decision – Held that:- Expenditure on gifts made on the occasion of marriages in the families of employees cannot qualify as business expenditure, especially when no evidence has been placed before us or even the lower authorities nor any argument has been made as to how the said expenditure was incurred as a matter of commercial expediency – Against assessee As regards other expenses, towards mess subsidy, sports & games or other welfare expenses – Held that:- CIT(A) has not recorded any findings as to the nature of these expenses nor even the AO analysed the nature of these expenses - matter remanded to CIT(A) Disallowance of employees share towards provident fund - CIT(A) allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2) The ld. CIT(A) erred in law and on facts of the case in directing the Assessing Officer for allowing the claim of Rs.3,72,918/- paid as employees contribution to PF after the due date, u/s 43B of the I.T. Act without revising the return of income. 3) The ld. CIT(A) erred in law and on facts of the case in directing the Assessing Officer for allowing the claim of Rs. 3,29,912/- paid as service tax before the due date of filing of return, u/s 43B of the I.T. Act without revising the return of income. 4) The appellant craves to amend, modify, alter, add or forgo any ground of appeal at any time before or during the hearing of this appeal. 2. Adverting first to ground no.1 in the appeal, facts, in brief, as per relevant orders are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e filed in respect of various expenses, without any evidence that the expenditure was incurred wholly and exclusively for the purpose of business of the assessee. In these circumstances, the AO disallowed an ad hoc amount of Rs. 8 lacs out of the aforesaid expenses. 3. On appeal, the assessee contended that the total receipts in the year under consideration increased by 4.97 times vis- -vis receipts in the preceding year while salary and wages increased by 4.93 times and welfare expenses by 4.7 times vis- -vis expenses in the preceding year. Since strength of security personnel increased by about 500 ,accordingly, there was corresponding increase in expenses and thus, adhoc disallowance was not justified. In the light of these submissions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lacs out of aforesaid expenses since the assessee did not furnish any evidence nor established the commercial expediency of various expenses ,including mess subsidy, marriage gifts other welfare expenses referred to in the assessment order. The ld. CIT(A) deleted the disallowance, without analyzing the nature of various expenses on the ground that disallowance was adhoc and referred to certain decisions rendered in the context of method of accounting and provisions of sec. 145 of the Act. A mere glance at these decisions reveals that these were rendered in altogether different contexts. The issue before us is as to whether the expenses on marriage gifts and other expenses were incurred wholly and exclusively for the purpose of business o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the parties, bringing out clearly the nature of these expenses. Needless to say that while redeciding the appeal, the ld. CIT(A) shall pass a speaking order, keeping in mind, inter alia, the mandate of provisions of sec. 250(6) of the Act . With these observat ions, ground no. 1 in the appeal is disposed of . 7. Ground nos..2 and 3 in the appeal relate to disallowance of employees share towards provident fund and service tax respectively u/s 43B of the Act. There is no discussion on disallowance of Rs.3,72,918/- towards employees contribution to PF and Rs. 3,29,912/- paid as service tax, in the assessment order. However, the ld. CIT(A) allowed the claim of the assessee on account of employees contribution towards PF in the light of de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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