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TMI Blog2019 (4) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... dition of Rs. 3,13,136/- under the sub -head subscription expenses as these expenses were personal in nature. 3. The Ld. CIT(A) has erred in law and in facts in deleting the addition of Rs. 2,00,000/- under the consultancy expenses and addition of Rs. 1,07,116/- being expenses incurred in advertisement in Hindustan Times on the anniversary Of Late. Sh. Janki Dass Kapur which were personal in nature and not for the business purpose. 4. The Ld. CIT(A) has erred in law and in facts in deleting the addition of Rs. 2,21,978/- under the sub head glow shine board expenses .Since the normal life of glow shine board is of three years and the expenses incurred on glow shine board are debited during the year under consideration which is not allowable. The Ld.CIT(A) has also erred in law in deleting the addition of Rs. 5,00,000/- under the head worker and staff, welfare for which no bills or vouchers were furnished during the assessment proceedings. 5. The Ld.CIT(A) has erred in law and in facts in deleting the addition of Rs. 4,00,000/- out of foreign travel expenses of Rs. 1,13,78,091/-. It is observed that most of foreign travel expenses are in connection of foreign travelling of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st attributable to advance made to Sh.Arun Kumar. 4.1. At outset Ld.Counsel submitted that issue stands squarely covered by order of this Tribunal in assessee's own case for Assessment Year 2003-04 to 2010-11 wherein Tribunal has adjudicated this issue in favour of assessee by holding that said amount has been embezzled by Sh.Arun Kumar and therefore question of charging interest or foregoing interest do not arise. Ld.Counsel relied upon page 10-44 of paper book wherein this issue has been dealt with in preceding assessment years by observing as under: " 2.3. The Ld. AR submitted that the amounts were not advances but pertain to amounts withdrawn through embezzlement and fraud conducted by Sh. Arun Kapoor against which FIRs have also been lodged. It was submitted that since the assessee has not given these amounts out of its own free will but the same have been taken through fraud, the AO has been wrong in concluding that such amounts have been diverted by the assessee for the non business purposes. It was submitted that the company has terminated the services of Sh. Arun Kapoor and legal recourse has been taken to resolve the issue. It was also submitted that the company had s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any is managed by number of Executives who take care of day-to-day running of company and are often invited in their personal capacity on behalf of company. It has been submitted by Ld.Counsel that such invitations are received due to business relations with clients and employees of company. Ld.Counsel submitted that such business expediency cannot be ignored. 6. We have perused submissions advanced by both sides in light of records placed before us. 7. Ld.Counsel placed reliance on decision of this Tribunal in assessee's own case for assessment year 1978-79 in ITA No. 4393/Del/1982 placed at page 1-20 of paper book 2, wherein it has been observed that marriage gifts to dependents of employees are given in accordance with scheme laid down by company. It has been observed that these expenses are incurred towards marriage gifts to family members/dependents of staff/dealers are normal business courtesy incurred in course of running business. It has also been observed therein that these expenses are incurred by way of staff welfare and allowable as revenue expenditure on ground of commercial expediency and to develop good relationship with employees/dealers so as to further business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have perused submissions advanced by both sides in light of records placed before us. It is observed that assessee before Ld. CIT(A) tabulated nature of services rendered by these personnel and has also submitted copy of appointment letters along with form 16 A, wherein TDS has been deducted. 14.1. In our considered opinion Ld.AO has made ad-hoc disallowance on mere surmises which cannot be allowed. Ld.CIT(A) has not recorded any infirmity in respect of the same. We do not therefore find any infirmity with the view taken by Ld.CIT(A) and the same is upheld. 14.2. Insofar as expenses towards advertisement in Hindustan Times is concerned, it has been submitted that Sh. Janki Dass Kapur who was the founder of assessee, and, it was under his able leadership that company achieved tremendous growth and excellence in field of cycle manufacturing. It has been submitted that these expenses have been incurred in loving memory of Sh. Janki Dass Kapur's death anniversary to pay tribute/homage on behalf of management, staff and workers of all 5 units of company. Looking into cause, we do not find any infirmity in view taken by Ld. CIT (A) and same is upheld. Accordingly this ground raised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as a result of foreign visits and has also failed to furnish complete details of persons travelled outside India. It has also been submitted that foreign travel has been undertaken by Kapoor family, who were top management of company. Under such circumstances ad-hoc disallowance made by Ld.AO deserves to be upheld. 17.2. On the contrary Ld..Counsel submitted that issue stands squarely covered by order of this Tribunal for assessment year 2003-04 to 2010-11. 18. We have perused submissions advanced by both sides in light of records placed before us. 18.1. It is observed that addition of foreign travel expenses has been deleted by this Tribunal on ground that FBT has been duly paid on such expenses. For year under consideration there is no such clarity arises out of assessment order neither has Ld. Counsel submitted anything in respect of the same. Further on perusal of order passed by Ld.AO, it is categorically clear that family members of Kapoor family have undertaken foreign travel. Since assessee has not provided any details of personnel travelled abroad, we do not find any infirmity in disallowance made by Ld.AO and same is upheld. 18.2. Insofar as addition on account of e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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