2023 (10) TMI 1037 - AT - Income Tax

Business promotion expenses - claim disallowed as these expenses are not fully vouched and contained personal element thereon - HELD THAT - AO observed truely that the assessee had debited a sum on account of Diwali expenses, miscellaneous expense much more as compared to immediately preceding year. Before us, no contrary evidence has been placed on record by the assessee to prove as to why the disallowance have been wrongly made. Accordingly, we deem it fit not to deviate from the stand taken by the ld CIT(A). Accordingly, we uphold the order of the ld CIT(A). Grounds raised by the assessee are dismissed.

Summary

Issues Involved:
The judgment involves the appeal against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961, regarding the disallowance of business promotion expenses, Diwali expenses, and Miscellaneous expenses by the Assessing Officer and confirmed by the ld CIT(A).

Business Promotion Expenses:
The ld AO observed unverifiable expenses towards business promotion and made a disallowance of Rs. 4 lacs. The assessee contended that the expenses were duly supported from vouchers and incurred in the course of business, but failed to provide contrary evidence. The Tribunal upheld the disallowance based on lack of evidence.

Diwali Expenses:
The ld AO disallowed Rs. 2 lacs on account of unverifiable Diwali expenses, stating they contained a personal element. The assessee argued that the expenses were supported by vouchers and for business purposes. However, as no contrary evidence was presented, the Tribunal upheld the disallowance.

Miscellaneous Expenses:
A disallowance of Rs. 2 lacs was made by the ld AO for unverifiable miscellaneous expenses containing a personal element. The assessee claimed the expenses were supported by vouchers and incurred for business. As no contrary evidence was submitted, the Tribunal upheld the disallowance.

Decision:
The Tribunal dismissed the appeal as the assessee failed to provide evidence contrary to the disallowances made by the ld AO. The order of the ld CIT(A) confirming the disallowances was upheld due to the lack of substantiating evidence from the assessee. The appeal was ultimately dismissed, and the order was pronounced on 20/10/2023.