TMI Blog2016 (12) TMI 1611X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO has not demonstrated as to how the personal element is involved in these expenses. Therefore, the action of the ld. CIT (A) confirming the finding of the AO is not justified. We, therefore, direct the AO to delete this disallowance. This ground of the assessee is allowed. - ITA No. 708/JP/2016 - - - Dated:- 27-12-2016 - Bhagchand (Accountant Member) And Kul Bharat (Judicial Member) For the Assessee : P. C. Parwal C.A For the Revenue : Rajendra Singh (Addl. CIT) ORDER Kul Bharat (Judicial Member) This appeal by the assessee is directed against the order of ld. CIT (A)-2, Jaipur dated 26.04.2016 pertaining to A.Y. 2011-12. The assessee has raised the following grounds of appeal :- 1. That the learned CIT (A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Doctors amounting to ₹ 6,87,833/-, disallowance of expenditure on agricultural income of ₹ 3,56,372/- apart from other expenses. Aggrieved by this order, the assessee preferred appeal before ld. CIT (A), who after considering the submissions, partly allowed the appeal. While allowing the appeal, the ld. CIT (A) confirmed the disallowance of expenditure of ₹ 6,87,833/- and also entertainment expenditure of ₹ 19,286/-. Aggrieved, the assessee is in appeal before this Tribunal. 3. Ground nos. 1 to 3 relate to confirmation of disallowance of ₹ 6,87,833/-. The ld. Counsel for the assessee reiterated the submissions as made in the written brief and also relied on the decision of the Coordinate Bench rendered in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance of any expenditure would be that it is expended wholly and exclusively for the business purposes. The AO has enumerated at page 4 of the assessment order the expenses incurred for reimbursing the expenditures of the Doctors. We are unable to find that how these expenditures are related to the business of the assessee. The requirement of law is that the expenditure ought to have been incurred wholly and exclusively for the purpose of business. The assessee has not brought any material on record suggesting that by incurring these expenditures the business of the assessee is benefited or there is any relation with the expenditure as incurred by the assessee and business of the assessee. It is noticed that either the purchases are ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see. The ld. Counsel placed reliance on the decision of the Coordinate Bench in ITA Nos. 6429 6428/Mum/2012. In that case also the gift related to the Logo of the company. In the present case the assessee was required to demonstrate the expenditure in relation to business. So far the reasoning given by the AO that the expenditures were prohibited by law, in our considered view, this issue is covered by the decision of the Coordinate Bench. Therefore, in our view the issue requires fresh consideration by the AO. We, thus set aside the order of ld. CIT (A) and restore the issue to the file of AO for decision afresh. 4. Ground no. 4 is against confirmation of disallowance of ₹ 19,286/- out of dealer entertainment expenses. 4.1. A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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