TMI Blog2022 (12) TMI 930X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses was uncalled for as per the assessee. Here, we find that the 10% addition in the accountant of foreign currency and credit card expenses is liable to be deleted. Staff and welfare gift shagun expenses - To encourage the efficiency working mobility the amount was paid to staff in different occasions. All the payments are vouched and details of the payments are enclosed in APB pages 8 to 56 by the assessee. The expenses are related to this business. So, we find no specific findings in relation to this disallowance of Rs. 4 lac by the Ld. CIT(A) and the expenses are fully connected with the business income of the assessee. Accordingly, the addition amount of Rs. 4 lac is liable to be deleted. Disallowance of depreciation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2019, passed under section 254(1) of the Act was rectified was recalled. The appeal was directed to be listed for hearing in that regard. When the appeal was called for hearing, no one appeared on behalf of assessee to represent his case. There is only application for seeking adjournment. But the reason of adjournment was not viable. The reason of adjournment is extracted as below:- In this respect, it is submitted that the counsel of assessee CA Pankaj Bhalla who was to conduct this case is extremely preoccupied in preparing balance sheets and filing tax audits as due date is fast approaching i.e., 30/09/2022 On perusal of record, we find that the hearing is scheduled on 28/09/2022. In view of the above and considering the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as follows:- a. Foreign Currency Credit Card Expenses. Rs. 530,133/- b. Staff Welfare Expenses and Gift Shagun Expenses Rs. 400,000/- c. Disallowance of Building Depreciation Rs. 79,386/- 4. Being aggrieved assessee filed an appeal before us. 5. We consider the order of the Ld. CIT(A) in paragraph 5.2 page 8 which is extracted as below:- 5.2 I have considered the observations of the Assessing Officer as made by her in the assessment order while making impugned addition. I have also considered written submissions filed by the assessee through its learned AR vide letter dated 13.07.2016. I have further considered various judicial pronouncements relied upon by the assessee including my own decision in appeals No. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... various decisions of the Honorable Jurisdictional ITAT on the subject whereby 10% disallowance out of foreign currency expenses has been held to be justified, I am of the opinion that the disallowance made by the Assessing Officer is quite excessive looking to overall facts of the case. I am further of the opinion that it will be fare and reasonable if the disallowance out of foreign currency utilization and credit card expenses is restricted to 10% of the total expenses under reference. I am again of the opinion that the judicial pronouncements relied upon by the assessee will not support its case as the facts of those cases are entirely different from the facts of the case of the assessee company. 6. We heard the submission of the L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on this issue. 13. It is apparent that the Tax Authorities below did not realise the practical difficulty of a businessman that it is not possible to obtain receipts from each and every taxi-driver for utilization of the conveyance. There are certain expenses for which vouchers, as expected by the Departmental Officer, cannot be obtained. Moreover, such lumpsum disallowance without pointing out the exact amount cannot be appreciated. The disallowance of Rs. 15,000 sustained by the CIT(A) is deleted. 6.1. Here, we find that the 10% addition in the accountant of foreign currency and credit card expenses amounting to Rs. 5,30,133/- is liable to be deleted. 6.2. In case of staff and welfare gift shagun expenses the Ld. CIT(A) has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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