TMI Blog2016 (3) TMI 814X X X X Extracts X X X X X X X X Extracts X X X X ..... istency will not apply in the present facts. In our opinion, the expenses on car maintenance, office maintenance and entertainment to clients have been debited by Sh. U.A. Rana in his books of accounts and same have been reimbursed to him by the assessee firm claiming to have incurred for the purposes of the business and professions of the assessee firm, however, such bills were not produced before the ld. Assessing Officer for verification whether incurred wholly and exclusively for the purpose of the business or profession of the assessee firm. Therefore, in the interest of justice, we restore the matter to the file of the Assessing Officer to decide the issue afresh, in accordance with law, and also direct the assessee to produce all the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use 10.1 of partnership deed dated 1st July 2008. Hence, the addition made is illegal, arbitrary, unjustified and against the facts and bad in law, may kindly be deleted. 4. That the Appellant craves leave to add/amend/withdraw or modify the grounds of appeal at the time of hearing. 2. The facts in brief are that the assessee, a partnership firm of advocates, filed its return of income for the year under consideration declaring income of ₹ 2,87,75,710/- on 13.10.2010. The case was selected for scrutiny and notice under Section 143(2) of the Income-tax Act, 1961 (for short the Act ). In the course of scrutiny proceedings, the ld. Assessing Officer observed from the Profit and Loss Account that the expenses of ₹ 5,20,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further observed that the payments were made only to one resident partner and only on salary and interest paid to the partner was eligible for deduction subject to the restrictions contained in Section 40B of the Act. In view of the observations, the ld. Assessing Officer disallowed the expenses of ₹ 6,00,000/- and added to the income of the assessee. The other additions were also made by the ld. Assessing Officer which are not in dispute before us in present appeal. Aggrieved by the above additions, the assessee preferred an appeal before the learned Commissioner of Income Tax (Appeals) who confirmed the said additions of ₹ 5,20,000/- towards partners conveyance and office maintenance expenses and ₹ 80,000/- towards ente ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses of ₹ 4,00,000/- for the amount reimbursed to the resident partner Sh. U.A. Rana for the use and maintenance of the motor car. It is not in dispute that the vouchers in respect of reimbursement were produced before the ld. Assessing Officer but the actual bills/ invoices of expenses incurred by Sh. U.A. Rana were not produced before the ld. Assessing Officer. The assessee has submitted a copy of ledger account of Sh. U.A. Arana in respect of car maintenance, which is placed at page no. 19 of the paper book. According to the ledger account, total amount of ₹ 4,01,917/- was incurred on car maintenance by Sh. U.A. Rana, out of which, ₹ 4 lacs was transferred towards the assessee firm and ₹ 1,917/- was claimed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the ld. Assessing Officer for verification whether incurred wholly and exclusively for the purpose of the business or profession of the assessee firm. Therefore, in the interest of justice, we restore the matter to the file of the Assessing Officer to decide the issue afresh, in accordance with law, and also direct the assessee to produce all the said bills for verification and if the same are incurred wholly and exclusive for the purposes of the business/profession carried on by the assessee firm, the same should be allowed. We order accordingly. The ground of the appeal is allowed for statistical purpose. 7. In the result, the appeal is allowed for statistical purpose. The decision is pronounced in the open court on 8.2.2016. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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