9911796707
TMI Blog2014 (11) TMI 1223X X X X Extracts X X X X X X X X Extracts X X X X ..... firming disallowance of Rs. 89,911/- being 20% of telephone expenses of Rs. 4,49,555/- on ad hoc basis without appreciating that the similar addition had been deleted by Income tax Appellate Tribunal in assessment year 2005/06 vide ITAT No. 6457/Mum/2001 dated May 15, 2009. On the facts and in the circumstances of the case, the said learned Commissioner of Income-tax has also erred in confirming the disallowance of business promotion expenses of Rs. 97,640/- being 20% of Rs. 4,88,201/- on ad hoc basis as personal expenses, without ringing any material on record and without appreciating that during the year the appellant's turnover was Rs. 19,92,45,824/- having 84 sites and padi the Fringe Benefit tax on the said amount. On the facts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... condly, in A.Ys. 2004-05 and 2005-06, the Tribunal has deleted the said disallowance. Therefore, in this year also the said disallowance should be deleted. 4. On the other hand Ld. DR, submitted that no details with regard to telephone expenses were furnished therefore, this disallowance has rightly been made. 5. After considering the rival submissions and also on perusal of the impugned order as well as the Tribunal order, we find that the assessee before the AO could not furnish any details of expenses, neither with regard to purpose for which the telephone was used and where such telephones were installed. In such a case, personal user by the partners cannot be ruled out. There cannot be any precedence on factual matter, when in A.Y. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agree with the contention of the learned counsel that, if the assessee has paid FBT on the said amount then no disallowance is called for. However, in order to verify, this contention the matter is restored to the file to the AO, to see whether, any FBT has been paid on the amount debited for business promotion expenses. In case FBT has been paid then no disallowance should be made on such payment. Accordingly, ground no. 2 is partly allowed. 9. Ground no. 3 and 4 pertains to disallowance made u/s 14A read with rule 8D. The assessing officer noted that the assessee has claimed dividend income of Rs. 60,55,179/- and long term capital gain of Rs. 13,95,825/- as exempt. However, no disallowance u/s 14A has been offered in the computation of i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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