TMI Blog2020 (4) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... at the disallowance made by the AO on account of driver s salary and fuel and lubricant expense was fully justified and the Ld. CIT(A) has rightly confirmed by the same. Business conference expense - HELD THAT:- As observed that organising the business conference was accepted by the AO as incidental to the business of the assessee in the field of direct selling. However keeping in view the failure of the assessee to produce the relevant documentary evidence in the form of bills and vouchers to support and substantiate the same, he disallowed the claim of the assessee for business conference expense to the extent of 50%. Keeping as the nature of assessee s business, as find merit in the contention of the learned counsel for the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 48,000/- ii. Fuel and lubricant expense ₹ 1,50,265/- iii. Business conference expense ₹ 1,50,000/- iv. Flight Booking expenses ₹ 2,13,928/- Total ₹ 5,62,193/- 2. The assessee in the present case is an individual who is carrying on the business of commission agent. The return of income for the year under consideration was filed by him on 28.03.2016 declaring a total income of ₹ 8,10,830/-. In the assessment completed u/s 143(3) vide an order dated 21.12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of his claim. Since business conference is necessary in the field of direct selling business and the assessee was unable to produce any evidence like bills and vouchers. Hence 50% of the said expenditure i.e. ₹ 1,50,000/- is disallowed and added back to the total income of the assessee. 3.4(i) Flight Booking Expenses: Along with the submission dated 13.12.2017, the details of flight booking expenses were submitted by the assessee. The details of the expenses are as below: Sl.No. Passerger s Name Date of journey Amount (Rs.) 1 Avinash Shaw 21.06.2014 1,100/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 3,07,479/-. Since travelling within country and outside the country is necessary in the filed of direct selling business and the assessee was unable to produce any evidence of ₹ 3,07,479/- like bills and vouchers. Hence 25% of the said expenditure i.e. ₹ 76,870/- (25% of ₹ 3,07,479) is disallowed and added back to the total income of the assessee. 3. The disallowance made by the AO on account of various expenses was challenged by the assessee in the appeal filed before the Ld. CIT(A) and since the submission made on behalf of the assessee in support of his case was not found satisfactory by him, the Ld. CIT(A) confirmed all the disallowances made by the AO and dismissed the appeal of the assessee. Aggrieved by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nse to the extent of 50%. Keeping in view all the facts and circumstances of the case as well as the nature of assessee s business, I find merit in the contention of the learned counsel for the assessee that the disallowance of 50% made by the AO is on the higher side and it would be fair and reasonable to restrict the same to 20%. 6. As regards the flight booking expenses, the learned counsel for the assessee has submitted that the said expenses as stated at serial no 4 to 7 in the details given in assessment order were in respect of the employee s of the assessee and since the same were incurred wholly and exclusively for the purpose of the assessee s business, the disallowance made by the AO to that extent is not sustainable, I find m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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