TMI Blog2020 (11) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... ncurred in advertisement in Hindustan Times on the anniversary of Late Shri Jai Dev Kapur - business or personal in nature - HELD THAT:- These expenses have been claimed in the past and there is no fresh finding given by the Revenue during the assessment proceedings as well as the appellate proceedings as to why these expenses should not be allowed. The assessee has produced the evidences before the Revenue authorities and established the claim for these expenses. Hence, ground No. 2 of Revenue s appeal is dismissed. Addition under the head glow shine board expenses - Since the normal life of three years and expenses incurred are debited during the year under consideration are not allowable - HELD THAT:- Regarding capitalization of gl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inding that these foreign trips were for the business purpose only. Hence ground No. 5 of the Revenue s appeal is dismissed. - ITA. No. 4026/Del/2016 ITA. No. 4691/Del/2017 - - - Dated:- 4-11-2020 - SHRI G. S. PANNU , VICE PRESIDENT AND MS. SUCHITRA KAMBLE , JUDICIAL MEMBER Department by : Shri R. K. Gupta , Sr. D. R . ; Assessee by : Shri Salil Agarwal , Adv. ; Shri Shailesh Gupta , Adv . ; ORDER PER SUCHITRA KAMBLE , JM : These two appeals are filed by the Revenue against the order dated 11.05.2016 and 09.05.2017 passed by the Commissioner of Income Tax (Appeals), Rohtak for assessment years 2013-14 and 2014-15 respectively. 2. The Revenue has raised the following grounds of appeal for assessment year 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the foreign travels expenses are in connection of Kapoor family who are the top management and not related with the company. The CIT(A) did not establish that these expenses were for business purposes. 3. The Revenue has raised the following grounds of appeal for assessment year 2014-15 :- 1. On the facts and in the circumstances of the case the Ld. CIT (A) has erred in law and facts in deleting the addition of ₹ 1,60,88,065/- which was made by the A.O on account of interest attributable to advance made to Sh. Arun Kumar .The A.O had disallowed interest of ₹ 1,60,88,065/- as interest attributable @ 12% on ₹ 13,40,67,214/- which has been advance to Sh Arun Kumar out of interest bearing funds of the company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 779.97 lakhs yielding GP rate of 11.44. In the preceding year i.e. assessment year 2012-13 the assessee company declared turnover of ₹ 87,532.07 lakhs and gross profit of ₹ 10009.29 lakhs yielding GP rate of 11.43%. In the financial year 2010-11 the assessee company declared turnover at ₹ 76518.94 lakhs and gross profit of ₹ 876.11 lakhs yielding GP rate of 11.43%. On comparison of gross profit results the Assessing Officer observed that GP declared by the assessee during the year is better as compared to the preceding two years and the relevant trading and manufacturing accounts figures i.e. purchases, sales, consumptions, wages, fuel expense4s etc. were found vouched. Hence, the GP declared by the assessee w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Representative submitted that the CIT (Appeals) erred in deleting the addition of ₹ 54,000/- under the sub-head marriage gift, addition of ₹ 4,99,837/- under the head subscription expenses for various clubs, addition of ₹ 2,00,000/- under the head consultancy expenses and addition of ₹ 2,97,597/- being expenses incurred in advertisement in Hindustan Times on the anniversary of Late Shri Jai Dev Kapur as these expenses are personal in nature. 11. The learned Authorized Representative relied upon the order of the CIT (Appeals). 12. We have heard both the parties and perused all the relevant material available on record. These expenses have been claimed in the past and there is no fresh finding given by the Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... head sale promotion and ₹ 2,50,000/- under the head staff welfare. All these expenses are un-vouched and for which no bills were furnished. 17. The learned Authorized Representative relied upon the order of the CIT (Appeals). 18. We have heard both the parties and perused all the relevant material available on record. The assessee company has given the details of these business expediency related to these expenses and demonstrated before the Assessing Officer as well as CIT (Appeals) about the genuinity of these expenses. In the past also these expenses were allowed by the Revenue. Hence, ground No. 4 of the Revenue s appeal is dismissed. 19. As regards ground No. 5, the CIT (Appeals) deleted the addition of ₹ 3,00,000/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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