TMI Blog2010 (4) TMI 1135X X X X Extracts X X X X X X X X Extracts X X X X ..... reign traveling expenses even though the assessee had failed to establish that these expenses were incurred wholly and exclusively for business purposes. 2. On the facts and in the circumstances of the case, the Ld CIT(A) has erredon facts and in law in deleting the addition of ₹ 89,211/- and ₹ 2,35,722/- made by the Assessing Officer on account of telephone, vehicle maintenance expenses, insurance of car and depreciation on car, ignoring the real life factual proposition that possibility of user of telephone, vehicle could not be absolutely ruled out and in contravention of the decision of Hon'ble Madras High Court in the cases of CIT v. Chitram and Co. (P)_ Ltd. 191 ITR 96 and CIT v. Madura Coats Ltd. 263 ITR 241. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led out and he made disallowance of ₹ 89,210/- to the extent of 1/6th of total expenses. Similarly, it is also noted by him that the assessee has incurred expenses of ₹ 8,19,290/- on account of maintenance of vehicle and ₹ 37,073/- on account of car insurance and has claimed depreciation on car to the extent of ₹ 5,57,974/- and in this manner total amount of ₹ 14,14,337/- was incurred by the assessee on account of car running and maintenance. It is further noted by the Assessing Officer that the assessee could not produce any log book/register for use of vehicle only for business purpose. It is also held by the Assessing Officer that use of vehicles for non business purpose cannot be ruled out and he made disal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of the Ld AR and perused the order of assessment . I have also gone through the assessment records and various documents placed by the Ld AR in the paper book and hold as follow:- The details of foreign traveling submitted by the assessee shows that the visits were undertaken to meet its customers situated at these places. That these customers were visited is established by the evidences filed in the form of mails sent by the assessee company to one of its customers located in USA by the name of Bearmach wherein the visit to the customers and examination of shafts was discussed. The assessee has further given assurance of monitoring further supplies to Bearmach in view of technical short comings in their previous supplies. Another Ema ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that apart from doubting, the Assessing Officer has not brought on record any adverse material to justify partial disallowance out of foreign traveling expenses and hence we confirm the order of the Ld CIT(A) on this issue. 10. Regarding ground No.2, we find that Ld CIT(A) has decided this issue on the basis of para 11 of his order which is also reproduced below:- Para 11. I have carefully considered the contentions of the Ld AR and perused the order of assessment. I have also gone through the assessment records, additional evidences and various documents placed by the Ld AR in the paper book and hold as follows:- In view of the fact that all details were filed, books were examined, disallowance has been made by the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
