9911796707
TMI Blog2022 (1) TMI 643X X X X Extracts X X X X X X X X Extracts X X X X ..... f appeal, the assessee has challenged the adhoc disallowance of Rs. 10,00,000/- made towards expenses debited on account of; travelling and conveyance; and miscellaneous expenses. 3. The assessee is engaged in the business of investment in securities and lending of money. It has shown income from rent at Rs. 1,74,85,640/-; consultancy charges of Rs. 3,40,000/-; interest income of Rs. 6,27,526/-; miscellaneous income of Rs. 98,738/-; and dividend income of Rs. 8,400/-. 4. The assessee has debited an amount of Rs. 67,42,559/- under the head employee benefit expenses and other expenses. Out of the said amount the assessee had suo moto disallowed Rs. 44,57,411/- as per the following details:- (i) Electricity, water & diesel charges 7,91, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ad-hoc addition of Rs. 10,00,000/-. 7. The ld. CIT (Appeals) has confirmed the disallowance. The relevant observations of the ld. CIT (Appeals) are as under:- "5.1 The assessee has filed the ledger account of travelling and conveyance, showing expenditure of Rs. 7,99,769/-, and the ledger account of boarding and lodging expenditure of Rs. 2,96,741/-. It is submitted that most of the travel expenses related to visits made to Kolkata and Mumbai for consultations with Khaitan and Co., Solicitors and Advocates, in relation to litigation in respect of properties belonging to the appellant. It is also stated that foreign travel expenses were incurred for a Vice President of the company visiting London for the purpose of liquidating the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o with the operation of the company at all. After careful consideration, the grounds of appeal nos. 1 and 2 are dismissed. " 8. We have heard both the parties and perused the relevant material referred to before us. In so far as the expenditure incurred on travelling and conveyance is concerned, the ld. Counsel has submitted that assessee has incurred most of the expenditure on domestic visit to Kolkata and Mumbai for consultations with 'Khaitan and Co., Solicitors and Advocates', who were handling the litigation of the appellant. In so far as the foreign travel expenses were concerned, the same were incurred towards travel of Directors and Vice President of the company visiting London for divesting the investment of Great Eastern Energy C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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