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2016 (11) TMI 1033 - ITAT AHMEDABAD

2016 (11) TMI 1033 - ITAT AHMEDABAD - [2016] 50 ITR (Trib) 175 - Disallowance of trip expenditure - quantification of expenses - Held that:- Quantification of disallowance does not involve any question of law. It is dependent upon the facts and circumstances in a particular year. The Revenue authorities have quantified the disallowance at ₹ 3,48,870 on an analysis of the details of the expenditure produced by the assessee. Once an estimated opinion is being taken by an authority, then, tha .....

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e of Sayaji Iron and Engg. Co. v. CIT [2001 (7) TMI 70 - GUJARAT High Court] disallowance was made out of the telephone expenditure under the belief that such facility might have been used by the employees of the company for personal purpose. Here in the present case, the learned Assessing Officer has brought on record that no business visit was required to be undertaken at Goa, and therefore, the expenditure cannot be debited in the accounts of the assessee. - Decided against assessee - I. T. A .....

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Tribunal) Rules, 1963-they are descriptive and argumentative in nature. In brief, the grievance of the assessee is that the learned Commissioner of Income-tax (Appeals) has erred in confirming the action of the Assessing Officer in rejecting the books of account and disallowance of ₹ 3,48,870 out of trip expenditure and ₹ 48,858 out of travelling expenditure. 3. Brief facts of the case are that the assessee-company at the relevant time was engaged in transportation business. It has f .....

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the expenditure which were not supported by any evidence. According to the Assessing Officer, in terms of percentage, discrepancy comes to 8.85 per cent. over the total such expenditure. Accordingly, the Assessing Officer has disallowed a sum of ₹ 17,39,100. 4. On appeal, the learned Commissioner of Income-tax (Appeals) has observed that as far as purchase of diesel is concerned, there could not be any inflation and the evidence is being maintained by the assessee. Therefore, out of the di .....

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ned by the assessee in ground No. 2 before the Tribunal. 5. The assessee had debited a sum of ₹ 1,84,103 under the head travelling expenses. On verification of record, the learned Assessing Officer found a sum of ₹ 48,858 was debited by the assessee with regard to Goa trip, which was undertaken in July, 2008. The assessee could not produce any supporting evidence. Moreover, the assessee has no business connection with Goa. The learned Assessing Officer has disallowed the claim of the .....

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of 10 per cent. is on higher side. He further contended that in the assessment year 2007-08, the trip and diesel expenditure was ₹ 1,25,09,666 and the Tribunal has confirmed the addition of ₹ 1,00,000. With regard to the disallowance of ₹ 48,858 is concerned, on the strength of the hon'ble Gujarat High Court decision in the case of Sayaji Iron and Engg. Co. v. CIT [2002] 253 ITR 749 (Guj), he contended that there cannot be any personal element in any of the expenditure incu .....

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c. As far as any amount incurred by the assessee in violation to Explanation I to section 37, then, such amount cannot be claimed as deduction. Thus, this plea of the assessee cannot be entertained. With regard to second disallowance, he contended that the expenditure was not incurred for the purpose of business. 8. I have duly considered the rival contentions and gone through the record carefully. As far as rejection of the books of account is concerned, this aspect has not been seriously dispu .....

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learned Commissioner of Income-tax (Appeals) has examined the issue, and thereafter observed that out of trip expenditure, the addition is to be made to the extent of 10 per cent. On due consideration of the material on record, including the arguments of the assessee that in earlier assessment year, a lump sum disallowance at ₹ 1,00,000 was confirmed by the Tribunal, I am of the view that quantification of disallowance does not involve any question of law. It is dependent upon the facts an .....

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