TMI Blog2020 (11) TMI 257X X X X Extracts X X X X X X X X Extracts X X X X ..... 3/2015 no material was furnished by the assessee before the Assessing Officer to substantiate genuineness of the expenditure. No material was placed on record by the assessee either before the CIT(A) or before the Tribunal to controvert the findings of the Assessing Officer. No merit in ground No.1 of the appeal, the same is dismissed, accordingly. Disallowance of claim of deduction u/s 36(1)(iii) - AO observed that the assessee has made borrowings of ₹ 14.21 crores during the period relevant to the assessment year under appeal and has paid interest of ₹ 1.57 cores @ 11.05% - HELD THAT:- AO while making the addition has observed that the assessee has diverted borrowed funds for non-business purposes and has debited huge int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rict disallowance to 10% of the total expenditure claimed for petrol and vehicle maintenance. The ground No.3 of appeal is partly allowed, in the terms aforesaid. Business promotion expenses - HELD THAT:- The expenditure has been made on entertainment of customers, gifts, etc. The payment for the expenditure has been made by credit card. The disallowance has been made primarily for the reason that the assessee has failed to furnish copies of bills, vouchers, etc. Considering entire facts disallowance of 50% is on higher side. Disallowance to the extent of 10% of the expenditure claimed would meet the ends of justice - ITA NO. 3151/MUM/2019 - - - Dated:- 30-9-2020 - Shri Vikas Awasthy, Judicial Member For the Assessee : None ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i) of the Act. However, in respect of other two expenditure i.e. vehicle running and maintenance and business promotion expenditure, the CIT(A) restricted the addition to 50% of the disallowance made. Still aggrieved, the assessee is in appeal before the Tribunal. 3. Ms. Kavita P. Kaushik, representing the Department vehemently defended the impugned order and prayed for dismissing the appeal of assessee. 4. Submission made by ld. Departmental Representative heard and the orders of authorities below examined. The ground No.1 of the appeal is against disallowance of ₹ 8,10,320/- in respect of job work charges paid to M/s. Pal Mohan Electronic Pvt. Ltd., a sister concern of the assessee. The expenditure has been purportedly incurre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies Amount (in. Rs.) Capital Agencies (P) Ltd. 21,85,813.00 Geodesie Limited 1,13,00,000.00 Global Electrical Electronics 11,50,000.00 ICE Softek Pvt. Ltd. 2,50,00,000.00 J.B.B Enterprises 3,18,063.25 Om Sai Enterprises 44,319.45 Rama Electronics 15,00,000.00 S.S.Enterprise 15,00,000.00 Uni Technology (Hongkong) Co. Ltd 9,34,000.00 UTI Technology (Hongkong) Co. Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest free advances on the touchstones of ratio laid down by the Hon ble Bombay High Court in the case of CIT vs. Reliance Utilities and Power Limited reported as 313 ITR 340. The ground No.2 is allowed for statistical purpose. 6. In ground No.3 of the appeal, the assessee has assailed disallowance of vehicle running and maintenance expenses confirmed by the CIT(A). The assessee has claimed vehicle running and maintenance expenses amounting to ₹ 5,70,459/-. The Assessing Officer disallowed the entire expenditure on the premise that the assessee has failed to provide copy of registration books of the vehicle, log book, etc. The CIT(A) restricted the disallowance to 50%. The contention of the assessee before lower authorities is that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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