TMI Blog2012 (2) TMI 667X X X X Extracts X X X X X X X X Extracts X X X X ..... on account of vehicle expenses, ₹ 3,20,000/- on account of travelling expenses, ₹ 2,70,000/- on account of telephone expenses, ₹ 2,40,000/- on account of miscellaneous expenses, ₹ 40,000/- ad hoc addition, ₹ 75,000/- on account of advertisement and presentation expenses and ₹ 64,000/- on account of ad hoc addition made on account of staff welfare expenses by placing reliance upon the order of the earlier year especially when the nature of expenses is factual and needs to be examined independently for each assessment year. The next ground pertains to addition of ₹ 13,05,652/- on account of belated payment of PF and ESIC and allowing ₹ 4,75,473/- as per section 43B of the Act. 2. During hear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 02 Addition out of vehicle Expenses 520000 03 Addition out of travelling expenses 320000 04 Addition out of telephone expenses 270000 05 Addition out of Misc. expenses 240000 06 Addition out of Entertainment expenses 40000 07 Addition out of Advertisement and presentation expenses 75000 08 Addition out of staff welfare expenses 64000 Tot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the A.Y. 1999- 2000 2001- 02 dated. 14.12.07 Page No. and Para No. Order of I.T.A.T. for the A.Y. 2000- 01 dated. 14.09.2007 01 Addition on account of Club Fees Pg 13 Para 31 to 34 No Ground Page 4 Para 3 02 Addition out of vehicle expenses Pg 13 Para 35 to 38 Pg 3 Para 9 Page 4 Para 3 03 Addition out of Travelling expenses No ground No Ground Page 4 04 Addition out of telephone expenses No ground No ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed on 04-03-2005 in the Appellant No. IT No. 086/2004-05 in the Asst. Year 2001-02. The said disallowance of ₹ 3900/- in respect of Club Membership fee is hereby deleted. 4.2.1 In Ground No. 2, the appellant has challenged the disallowance on account of P.F. and ESIC of ₹ 12,89,535/- (correct figure being ₹ 13,05,652/-) and ₹ 4,75,473/- respectively by invoking provisions of section 43B of the Income Tax Act. The appellant submits that the amount of Employers and Employees contribution of the PF were deposited within the grace period as allowable under the respective assessment years, the A.O. is not justified in disallowing the same. The learned counsel for the assessee during the course of appellant also rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said issue is decided in favour of the assessee. The issue was not challenged before the Hon'ble I.T.A.T. The appellant will accordingly get relief of ₹ 5,20,000/-. 4.4 In Ground Nos. 4 to 9 the appellant has challenged the disallowance made out of following expenses on adhoc basis:- S.No. Ground No. Nature of disallowance Amount (Rs.) 1 4 Travelling Espenses 3,20,000 2 5 Telephone Expenses 2,70,000 3 6 Misc Expenses 2,40,000 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e purpose of business or profession, and further (ii) must not be (a) capital expenditure, (b) personal expenses, or (c) an allowance of the character described in sections 30 to 36 and section 80VV of the Act. Our view is supported by the decisions in CIT vs. Indian Molasses Company Private Limited; 78 ITR 474 (SC), J.K. Cotton Mfg. Ltd. vs. CIT; 101 ITR 221 (SC) and Sasoon J. David Company Private Limited v. CIT; 118 ITR 261 (SC). Even otherwise, unless there is a limitation put by the law on the amount of expenditure, a lesser amount than the amount expended cannot be allowed merely because the assessing authority thinks that the assessee could have managed by paying a lesser amount as was held in Jamshedpur Motor Accessories Stores vs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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