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TMI Blog2019 (11) TMI 578X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 8,78,928/-. 2. Under the facts and circumstances of the case the ld. CIT(A) has erred in confirming the addition of Rs. 36,750/- for trade mark registration expenses. 3. Under the facts and circumstances of the case the ld. CIT(A) has erred in not allowing carried forward of long term capital loss of debt mutual fund of Rs. 10,31,572/- suffered by the assessee. 2.1 At the outset of the hearing, the ld.AR of the assessee submitted that he wants to withdraw the Ground No. 3 raised in the grounds of appeal for which the ld. DR has no objection. Hence, the ground no. 3 raised by the assessee is dismissed treating the same as withdrawn by the ld.AR of the assessee. 3.1 In Ground No. 1, the assessee is aggrieved that the ld. CIT(A) h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cities and fooding expenses were incurred in cash. Considering the defects pointed out by the AO and the submissions made by the appellant, it appears that disallowance made by the AO is on higher side. In view of the overall facts and circumstances of the case, the disallowances are restricted to 5% of such expenses. The appellant gets a relief of Rs. 4,39,465/-.'' 3.4 During the course of hearing, the ld.AR of the assessee has prayed for deletion of addition restricted @ 5% by the ld. CIT(A) to the extent of Rs. 4,39,465/- for which the ld.AR of the assessee has filed the written submission as under:- ''In the profit and loss account the assessee has claimed Rs. 87,89,282/- on account of exhibition expense and foreign traveling exp. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthorities. 3.6 We have heard the rival contentions and perused the materials available on record. It is undisputed fact that the assessee (Individual) is engaged in the business of manufacturing, trading & export of gold and silver jewellery. The assessee in his profit and loss account claimed a sum of Rs. 87,89,282/- on account of exhibition expenses and foreign travelling expenses. The assessee is an exporter and his wholesales business is export sales to the foreign customers. It is also not in dispute that the assessee had participated in exhibition in foreign countries and incurred charges for the same. The AO while making addition in the case of the assessee had mentioned that some of the bills and vouchers are handmade and some of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO thus disallowed the trade market registration expenses of Rs. 49,000/-. However, the AO allowed depreciation @ 25% of such expenses which comes to Rs. 12,250. Thus the AO made an addition of Rs. 36,750/- (Rs. 49,000 minus Rs. 12,250) to the total income of the assessee. 4.3 In first appeal, the ld. CIT(A) has confirmed the action of the AO by observing as under:- ''3..3.3 Determination I have duly considered the submissions of the appellant, assessment order and the material placed on record. The AO noted that the appellant has paid Rs. 49,000/- towards trademark registration expenses. The AO allowed depreciation @ 25% on such expenses and disallowed the balance. During the appellate proceedings, the appellant has submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ld. DR relied on the orders of the Revenue authorities. 4.6 We have heard the rival contentions and perused the materials available on record. It is noted that the assessee has claimed to have incurred the expenses of Rs. 36,750/- towards fee paid for registration of trademark. The AO had treated the same as capital in nature as according to AO the expenses incurred for registration of trademark are onetime expenses and the effect of the same are for a long period. Thus the expenses amounting to Rs. 49,000/- was disallowed by AO. However, AO disallowed the depreciation @ 25% which comes to Rs. 12,250/-. Conclusively, the AO disallowed a sum of Rs. 36,750/- under this head. The ld. CIT(A) in first appeal, confirmed the action of the AO. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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