TMI Blog1999 (8) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... ble income of the assessee ? (b) Whether, on the facts and in the circumstances of the case, the findings of the Tribunal to the effect that there was no material in support of the assessee's claim of having advanced monies to Pushpak Commercial Co. Ltd., towards booking of office flat for commercial purposes is against the evidence on record and/or otherwise unreasonable and perverse ? 2. (c) Whether, on the facts and in the circumstances of the case and in view of the provisions of section 40A(3) read with rule 6DD of the Income-tax Rules, the Tribunal was justified in confirming the addition of Rs. 94,506 representing payment made by the assessee-firm to Dharam Roadways ? (d) Whether, on the facts and in the circumstances of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort of C.I. casting goods made of cast iron as in the preceding year. The materials used in the business are pig iron. Inter alia, the assessee claimed deduction of payment of Rs. 1,49,902 on transport. During the scrutiny, the Income-tax Officer found that out of that expenditure, the assessee has paid Rs. 95,000 and the payments were in cash exceeding Rs. 2,500 on different dates. Therefore, that is hit by the provisions of section 40A(3) of the Act. The case of the assessee was that this cash has been collected by Shri P. K. Sureka from the assessee in Calcutta and it was for the payment to drivers. The Income-tax Officer disallowed the claim is the payment was in cash which is hit by the provisions of section 40A(5) of the Act read with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional evidence where the appellant was prevented by sufficient cause from producing the evidence before the Assessing Officer or in a case where the Assessing Officer has made the order appealed against without giving sufficient opportunity to the appellant to adduce evidence relevant to any ground of appeal. He further submits that in view of sub-rule (4) of rule 46A, the Deputy Commissioner (Appeals) or the Commissioner (Appeals), as the case may be, may direct the assessee to produce any document or ask for examination of any witness to enable him to dispose of the appeal. Learned counsel for the Revenue submits that in this case the Commissioner of Income-tax (Appeals) has not directed the assessee to produce the evidence in support o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the assessee has claimed interest on a borrowed cash loan of Rs. 8,60,000 and on the same date that has been advanced to Puspak Commercial Co. Ltd. free of interest. The case of the assessee is that this is not in fact an interest free loan to Puspak Commercial Co. Ltd. but it is an advance against a flat booked by the assessee in a building which was proposed to be constructed by Puspak Commercial Co. Ltd. But that building did not come up and the assessee thereafter withdrew that amount from Puspak Commercial Co. Ltd. Learned counsel for the assessee submits that the flat was booked for the purpose of an office. The Income-tax Officer found that the loan was advanced only to accommodate the party, Puspak Commercial Co. Ltd., as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urpose of the office and considering the finding of the Income-tax Officer, Commissioner of Income-tax (Appeals) as well as the Tribunal, we find no justification to interfere with the view taken by the Tribunal that the advance was not for the purpose of the business. The last issue for our consideration is whether the expenditure to the tune of Rs. 1,08,381 on travelling expenses abroad was for the purpose of the business? The assessee claimed before the Income-tax Officer that the three partners of the assessee-firm travelled abroad for exploring the market and for that purpose they undertook the business tour to the USA and Canada and the partners of the firm contacted about ten foreign traders for the purpose of the assessee's busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there before the Tribunal, the Tribunal should set aside the matter and ask for further enquiry whether the foreign tour was for the purpose of sales promotion. Learned counsel for the Revenue also has not seriously controverted this submission that in a case where proper enquiries are not made or sufficient material is not made available on record to give a finding whether the foreign tour was for the purpose of the business or for the purpose of sales promotion, the Tribunal should remit the matter to the Income-tax Officer for further evidence. It is true that no details were furnished before the Income-tax Officer as to whom the partners of the firm has contacted abroad for the purpose of sales promotion, but there is evidence on rec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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