9911796707
TMI Blog2016 (5) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... confirming the disallowance of foreign travelling expenses pertaining to Appellant's wife, without appreciating that she is a business associate in the Appellant's business for more than 18 years and she had been regularly contributing as a Designer to the Appellant's business for many years; therefore, the disallowance of her foreign travelling expenses is uncalled for and the same may be deleted. ii) The Id. CIT(A) further erred by inferring that the foreign visit of Mrs. Laila Lamba was only to take care of her childrens without appreciating that she is a technical person with rich experience and all her childrens are major; therefore, the disallowance on doubts and surmises is not justified and the same may be deleted. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... invoke Sect.41(1) to brand it as a case of ceased liability; hence, the addition may be deleted. 3. Levy of Penal Interests The Appellant, on merits, denies his liability to penal interest. 4. The Appellant craves leave to add, amend or alter all or any of the above Ground of Appeal." 2. The brief facts of the case are that the assessee is the proprietor of M/s. Dolphin Exports which is engaged in the business of manufacturing of furniture. The assessee is mainly exporting the furniture and also derives income from agriculture. The return of income declaring total income of Rs. 5,45,189/-including agricultural income of Rs. 50,000/- was filed on 29/09/2009. The return of income was processed u/s 143(1) of the I.T. Act. The case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee would also try to boost his business activities in the places which are visited by him along with family during the foreign trips. But the expenses incurred by wife Mrs. Laila Lamba on account of foreign trips was rejected by the AO and upheld by the CIT(A) on the ground that during such foreign trips, the children of the appellant were also accompanying them therefore, it was held that such trips appears to be enjoyment trips and after anlaysing the written submissions filed by the assessee. We found that it is claimed by assessee that his wife Mrs. Laila Lamba is associated in the business of assessee for the last 19 years but the said fact has not been accepted by the AO. The AO has carried out detailed investigation and only ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of Rs. 1,60,306/- as cessation of liabilities u/s 41(1) of I.T. Act. Since the same has been found to be appearing for more than three years and accordingly additions were made by AO and upheld by the CIT(A). In this connection ld. AR claim that all three parties are regular clients and had purchased furniture from the assessee. Since they were to purchase furniture from the assessee against which they had left certain amount as advance with the assessee and since these parties are from abroad therefore they had said that they would be purchasing furniture from the assessee in future and the advance paid by them would be adjusted latter on at the time of actual sales. Ld. AR also relied upon the judgements which are cited below: "(201 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
