TMI Blog2017 (3) TMI 1030X X X X Extracts X X X X X X X X Extracts X X X X ..... lity to pay this amount had already crystalized as on 31st March 2004 as the assessee has distributed the prizes and the gift of gas mantles to the dealers in FY 2004-05 relevant to AY 2005-06 on the performance achieved on the sales achieved in the FY 2003-04 relevant to AY 2004-05. Therefore, this basis of disallowance made by the department is not sustainable and hence the additions as made are liable to be deleted - Decided in favour of assessee Disallowance of claim of deduction being the amount of expenses incurred on packing materials and transportation expenses - Held that:- In the present case the assessee company has discharged its onus by placing on record/supply to the revenue authorities of the requisite details in order to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... attempt has been made by the revenue to carry out any independent inquiry. Therefore, this basis of disallowance made by the department that it appears to be non-genuine is not sustainable and hence the additions as made are liable to be deleted and hence the same are deleted. - Decided in favour of assessee - I.T.A. No. 4707/Mum/2011 - - - Dated:- 15-2-2017 - SHRI G. S. PANNU, AM AND SHRI SANDEEP GOSAIN, JM For The Appellant : Shri Aditya Ajgaonkar For The Respondent : Ms Beena Santosh ORDER Per Sandeep Gosain, Judicial Member: The Present Appeal has been filed by the assessee against the order of Commissioner of Income Tax (Appeals)-49, dated 08.03.11 for AY 2004-05 on the grounds of appeal mentioned herein b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above. Ground No.1. 5. The Ld. AR appearing on behalf of the assessee submitted that Ld. CIT(A) erred in disallowing the claim of deduction of ₹ 10,58,168/- being the amount of provision made for sales promotion expenses incurred during the previous year. Ld. AR reiterated the same arguments which were raised before Ld. CIT(A). Ld. AR further submitted that the assesse company is engaged in the business of marketing of products like gas mantles, playing cares, coconut oil, etc manufactured by M/s Fargo Mantle Products Pvt. Ltd. other companies. Ld. AR further submitted that a sum of ₹ 10,58,168 spent on sales promotion scheme under the title Dhamaka Prize to its sales dealer debited under sales promotion expenses. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Fargo Mantle Products Pvt. Ltd. other companies. We further noticed that these expenses are incurred wholly to promote the sales of the products of the assessee by way of prizes and incentive to those dealers who achieved certain sales. But on the other hand the revenue authorities had disallowed the expenses by holding that these expenses are incurred in the next year and not pertains to the year under consideration. We noticed that while following the mercantile system of accounting according to which one has to account for income and expenses on accrual basis and since in the present case the liability to pay this amount had already crystalized as on 31st March 2004 as the assesse has distributed the prizes and the gift of gas mantles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her hand Ld. DR appearing on behalf of the revenue relied upon the orders passed by the revenue authorities. 7. We have heard the counsel for both the parties and we have also perused the material place on record as well as the orders passed by the revenue authorities and we have noticed that in the present case the assesse company has discharged its onus by placing on record/supply to the revenue authorities of the requisite details in order to establish the genuineness of the claim made by the assesse, therefore in these circumstances, we found that it is undisputed fact that the revenue authorities have not placed on record any material to show that the parties to whom payments were made were in any way related to the assesse and more ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel for both the parties and we have also perused the material place on record as well as the orders passed by revenue authorities and we have noticed that the revenue authorities have disallowed this amount on the ground that the nature of services being rendered by the person have not been proved by the assesse. We have noticed that the assesse has already furnished all the details called for by the Ld. AO like confirmation, copy of the return of income, Xerox copy of bank statement showing the debit/credit entries in the books of accounts in order to show that the retainership fee has been paid to the retainers and the same has already been shown in their return of income and paid tax due thereon, therefore now again taxing it in the ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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