TMI Blog2014 (6) TMI 887X X X X Extracts X X X X X X X X Extracts X X X X ..... r that the increase in this expenditure was mainly on account of photo shoot expenses and water proofing charges for the work carried out in one of the shops. Considering the nature of the business of designer jewellery and maintenance of showroom for the said purpose, the said expenditure was for the purpose of the business of the assessee and does not call for any disallowance. Accordingly the disallowance on account of sundry expenses is hereby ordered to be deleted.- Decided partly in favour of assessee. - ITA No. 6919/Mum/2012 - - - Dated:- 27-6-2014 - SHRI R.C. SHARMA ANDSHRI SANJAY GARG, JJ. For the Appellant : Shri V.P. Kothari, A.R. For the Respondent : Shri R.K. Sahu, D.R. ORDER Sanjay Garg (Judicial Member) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee, a partnership firm, has been carrying on trade of jewellery and ornaments. For the year under consideration, the assessee filed a return of income declaring a total income of ₹ 9,58,46,796. The Assessing Officer disallowed 20 per cent of the expenses claimed in respect of telephone expenses, printing and stationery expenses, sundry expenses, travelling expenses and sales promotion expenses on the ground that most of these expenses had been incurred on the basis of self-made vouchers and complete verification was not possible and further that there was a possibility of a personal element involved in incurring these expenses. The assessee preferred appeal before the Commissioner of Income-tax (Appeals). 3. Before the learned Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was mainly on account of photo shoot expenses and water proofing charges for the work carried out in one of the shops. He further observed that out of the foreign travel expenses claimed at ₹ 28,18,958, an amount of ₹ 90,645 was spent on foreign travel. It was explained before him that the said expenses were mainly incurred for purchase of air tickets and foreign exchange. But the learned Commissioner of Income-tax (Appeals) observed that the claim of hotel and stay expenses of foreign travel was on higher side in respect of foreign trips to Hongkong and Switzerland. He further observed that in respect of above expenses, the element of personal use could not be ruled out. Therefore, he disallowed 10 per cent. of telephone and su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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