TMI Blog2017 (8) TMI 1615X X X X Extracts X X X X X X X X Extracts X X X X ..... idental to assessee s business and are allowable as business expenditure. This view has been upheld in the case of CIT Vs. Bata India Ltd. [ 1993 (3) TMI 89 - CALCUTTA HIGH COURT] wherein it has been held that contribution to local puja and festival committees or organizations to avoid confrontation and for smooth running of its business are allowable as business expenditure. Therefore, we allow this ground of appeal of the assessee. Addition under the head repairs - ad hoc disallowance of 20% taking note of the fact that the expenses were made in cash and there were only internal voucher to support the same and since there is no way to verify the same and there being chances of inflation of the claim of expenses he made the disallowa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sallowance as confirmed by the ld. CIT(A) is arbitrary exercise of power and, therefore, unsustainable in the eyes of law and therefore, it stands deleted. - Decided in favour of assessee. - I.T.A. No. 338/Kol/2017 - - - Dated:- 23-8-2017 - Shri A. T. Varkey, JM AND Dr. A. L. Saini, AM For the Appellant : Shri Somnath Ghosh, Advocate For the Respondent : Shri Nicholas Murmu, JCIT ORDER Per Shri A.T.Varkey, JM This is an appeal filed by the assessee against the order of Ld. CIT(A)-6, Kolkata dated 13.01.2017 for AY 2011-12. 2. The first issue raised by the assessee is against the action of the Ld. CIT(A) in confirming the addition of ₹ 10,747/- which was made by the AO as donation and subscription accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowable as business expenditure. This view has been upheld by the Hon ble Calcutta High Court in the case of CIT Vs. Bata India Ltd. reported in (1993) 201 ITR 884 (Cal) wherein it has been held at page 890 that contribution to local puja and festival committees or organizations to avoid confrontation and for smooth running of its business are allowable as business expenditure. Therefore, we allow this ground of appeal of the assessee. 4. The next ground i.e. ground nos. 2 and 3 are in respect to the action of the Ld. CIT(A) confirming the addition of ₹ 1,91,258/- claimed by the assessee under the head repairs. The AO during the assessment proceedings found that the expenses claimed on account of repairs are made under four sub h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 1,34,967/- has been claimed with supporting evidence and the bills of the expenses have been found placed from pages 63 to 106 of the paper book, which we cross verified some of the expenses and cross-checked from ledger account and found to be correct. Similarly, copy of the ledger and evidence of repairs to machinery has been placed before us at pages 107 to 109 from where we note that the total expenses of ₹ 4,45,780/- has been claimed with supporting evidence and the bills have been found placed from page 102 to 146 of the paper book, which we have test checked and found to be correct. The Ld. AR drew our attention to the copy of ledger account and evidence of repairs to rack at page no. 147 of the paper book, which we find an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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