TMI Blog2018 (5) TMI 1604X X X X Extracts X X X X X X X X Extracts X X X X ..... her when compared to that in the balance sheet -thus the appeal of revenue is dismissed - Decided in favor of assessee. Disallowance of expenses incurred on advertisement and publicity - Held that:- the expenses incurred and giving of various gifts to customers have not been proved by the assessee with supporting documents - In petrol pump business, there is no necessity of incurrence of this expenditure - thus expenses are disallowed - Decided against the assessee. - I.T.A No. 2200/Kol/2016 - - - Dated:- 25-5-2018 - Shri Aby. T. Varkey, JM And Shri M.Balaganesh, AM For The Appellant : Shri Arindam Bhattacharjee, Addl. CIT For The Respondent : Shri Saikat Mullik, AR ORDER Per M.Balaganesh, AM 1. This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that he is an ex-military man air force and the subject mentioned land was allotted to him by ADDA on 23.08.1976 nearly 37 years back for ₹ 15,785/-. The construction thereon was carried out by him out of his salary savings, retirement benefits and LIC loans in the earlier years. Since, he was deriving salary income at the time of purchase of this property, there was no need to maintain his balance sheet. He further submitted that this property was given as collateral security for availing working capital facility from the bank when the retail outlet MS HSD business was started by him after his retirement. Accordingly, he pleaded that the value of the said asset cannot be treated as undisclosed asset in his hands. The ld. AO however ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. In the facts and circumstances of the case, the Ld. CIT(Appeals), Durgapur has erred in deleing addition of ₹ 33,68,000/- when the assessee is unable to offer any explanation regarding the source. 4. We have heard the rival submissions. The fact stated hereinabove remain undisputed and hence the same are not reiterated for the sake of brevity. It is not in dispute that the subject mentioned land was allotted to the assessee by ADDA on 23.08.1976 and the construction thereon was carried out by the assessee out of his salary savings, loan from LIC and retirement benefits. Hence the sources for investment in land and building stands duly explained. In any case, this subject mentioned property was not invested by the assessee duri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered in the stock statement submitted to the bank. Hence logically the value shown to the bank would always be higher than the value reflected in the balance sheet of the assessee. The ld. AO observed that there is absolutely no difference in the quantity of closing stock shown by the assessee in its closing stock as per book statement vis- -vis the closing stock submitted to the bank except due to loss claimed by the assessee due to evaporation and handling etc. The ld. AO did not agree to the explanations given by the assessee and accordingly proceeded to add the value of ₹ 8,79,156/- to the closing stock treating the same as undisclosed stock and completed the assessment. 6.1. The Ld. CIT(A) observed that the evaporation l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 265.00 4.3% The Ld. CIT(A) observed in his order as under: Considering the aforesaid facts and the observation of the AO out of total claim of evaporation loss which has more excessively claimed in case of HSD-Premium on 4.36% and in MS-Ordinary at 1.03% 1.07% which has resulted into claim of loss of ₹ 8,79,156/-, which has been disallowed by the AO. Keeping in view of the aforesaid facts the disallowance is restricted to 10% of the evaporation loss which comes to ₹ 87,915/- and the remaining portion of the addition of ₹ 7,91,241/- (Rs. 8,79,156/- minus ₹ 87,915/-) is hereby deleted. Hence this ground of appeal is partly allowed. Aggrieved the revenue is in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account the normal loss that are allowable on standard basis had rightly restricted that the disallowance to 10% of loss would meet the ends of justice. Hence in our considered opinion, the said order does not call for any interference. Accordingly, ground no. 3 raised by the revenue is dismissed. 8. The last ground to be decided in this appeal is as to whether the Ld. CIT(A) was justified in deleing the disallowance of expenses incurred on advertisement and publicity expenditure in the sum of ₹ 1,87,784/-, in the facts and circumstances of the case. 9. The brief facts of this issue is that the ld. AO from profit and loss account of the assessee noticed that the assessee has booked ₹ 1,87,784/- towards advertisement and p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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