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Income Tax Officer Ward- (2) , Ahmedabad Versus Kadam Exports (P) Ltd.

2016 (1) TMI 902 - ITAT AHMEDABAD

Disallowance on account of business promotion expenditure - CIT(A) deleted the disallowance - Held that:- The major portion of the expenses i.e. ₹ 7,88,883/- pertains to expenses incurred abroad and foreign travel. This disallowance has already been deleted and the Assessing Officer is not in appeal. As regards balance amount of ₹ 3,82,937/-, the ld. CIT(A) has already confirmed the disallowance to the extent of ₹ 1,00,000/- in respect of element of personal expenses, yet the A .....

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ble. We, therefore, uphold the action of the ld. CIT(A) and decline to interfere in the matter. - Decided against revenue

Disallowance on account of interest expenses - assessee itself had agreed that the advances are made out of loan from HDFC Bank (interest bearing fund) - CIT(A) deleted the disallowance - Held that:- as noted by the ld. CIT(A), the assessee has share capital of ₹ 2,97,21,600/- and accumulated profit to the extent of ₹ 2,20,75,710/-. Clearly, therefore, .....

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extent, we approve the action of ld. CIT(A) and decline to interfere in the matter.- Decided against revenue - ITA No. 101/Ahd/2012 - Dated:- 6-11-2015 - Pramod Kumar, AM And Kul Bharat, JM For the Appellant : Shiva Sewak For the Respondent : Tushar P Hemani ORDER Per Pramod Kumar, AM 1. By way of this appeal, the Assessing Officer has called into question correctness of order dated 20th October, 2011 passed by the ld CIT(A) in the matter of assessment under section 143(3) of the Income Tax Act .....

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are like this. During the course of scrutiny proceedings, the Assessing Officer noted that the assessee has incurred business promotion expenses mounting to ₹ 11,74,510/- which are far in excess of the business promotion expenses of ₹ 1,54,899/- incurred in the immediately previous year. It was in this backdrop that the details of business promotion expenses were called for and examined. The Assessing Officer noted that the assessee was not able to give bills and evidences in support .....

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the expenses incurred on purchase of silver items gifted to the customers. Aggrieved, the assessee carried the matter in appeal before the ld. CIT(A). It was contended that most of the expense are incurred on air tickets, hotel vouchers and other admissible heads. It was in this backdrop the ld. CIT(A) deleted the disallowance of ₹ 7,88,883/- which was in respect of the payments made for foreign travel, and as regards balance item, the ld. CIT(A) restricted the disallowance of ₹ 2,82 .....

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resentative with regard to domestic business promotion expenditure of ₹ 3,82,937/- submitted that major expenditure incurred is in respect of petrol, air tickets, restaurant charges, hotel rent charges, memento etc. incurred for the business of the Appellant only and accordingly page nos.4 to 35 of Paper Book was referred. So far as the observation of the AO that the credit card statements are in the name of Managing Director Mehulbhai Zaveri and therefore, the expenditure incurred are not .....

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rred by the director on behalf of and for business of the appellant company, the same is required to be allowed. 2.5 I have gone through the page nos.4 to 35 of Paper Book referred to me and they are the credit card statements in the name of the Managing Director of the appellant along with the vouchers prepared in respect of business promotion expenditure. From the perusal of the credit card statements, it can be seen that the expenditure incurred are in respect of petrol, air tickets, restaura .....

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taurant charges, hotel rent charges, entertainment expenditure is concerned, I am of the view that possibility of the personal use cannot be ruled out and therefore to meet the justice, I confirm disallowance to the extent of ₹ 1,00,000/- out of total domestic business promotion expenditure of ₹ 3,82,937/- and balance disallowance amount of ₹ 2,82,937/- is deleted hereby." 4. We have heard the rival contentions, perused the material on record and duly considered facts of t .....

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personal expenses, yet the Assessing Officer is in appeal. There is no material, however, to show that the personal expense incurred in the credit card statement exceeds the amount of disallowance which has been confirmed by the ld. CIT(A). In our considered view, action of the ld. CIT(A) seems to be reasonable and it does not call for any interference in the matter, particularly in the absence of any material having been brought on record to show that the disallowance confirmed by the ld. CIT(A .....

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