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TMI Blog2006 (6) TMI 267X X X X Extracts X X X X X X X X Extracts X X X X ..... er dated 28-3-2003 passed under section 143(3) at an income of Rs. 1,17,64,738 as under :- Income declared processed Rs. 1,02,40,740 Under section 143(1) dated 26-3-2001. Add back :- ( a ) Disallowance out of vehicle R M expenditure Rs. 1,24,045 ( b ) Disallowance out of telephone Expenses Rs. 1,62,685 ( c ) Disallowance out of Diwali Expenses Rs. 1,00,000 ( d ) Disallowance out of travelling expenses Rs.6,97,268 ( e ) Disallowance out of sales promotion Rs. 4,00,000 ( f ) Disallowance out of subscription expenses Rs. 40.000 Rs. 15,23,9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e proposition that the foreign tour expenses of the wife of the President of the assessee-company are not allowable as no business purpose was involved. He also placed on record the copy of the said judgment. He, therefore, submits that all the disallowances made by the Assessing Officer be restored. 5. On the other hand, the learned counsel for the assessee while strongly relying on the order of the learned CIT(A) submits that the issue pertaining to the impugned disallowance of expenses is covered by the orders of the Tribunal in the assessee s own case for the assessment years 1998-99, 1997-98, 1995-96 and 1992-93. He also placed on record the copy of the said order of the Tribunal appearing at pages 1 to 32 of the assessee s paper b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able expenditure." Whereas in the case before us it has been observed by the Assessing Officer that "such travels may be incidental to the business but not to the entire business of the assessee." Further we find that before the learned CIT(A) the assessee has contended vide para 7.2 of the order of learned CIT(A) that "In written submissions submitted during the appellate proceedings, the assessee made a detailed claim that how all directors of the company had specifically been granted permission ( sic ) by way of a resolution, allowing wives of the managing director and joint managing director to accompany them on their business tours abroad considering the social angle. Such accompaniment of wives, did a balancing act, from social angl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of the Tribunal as contained in para 10 of the order on this issue are as under :- "10. We have considered the rival submissions. The details of expenses have been filed, a copy of which is placed at page 7 of the paper book. The perusal of the details reveals that a sum of Rs. 42,000 was spent on reimbursement of expenses to directors on account of entertainment and Rs. 1,71,105 represented reimbursement of expenses to staff. The assessee itself has disallowed 50 per cent of such expenses. Another sum of Rs. 11.6 lakhs related to business promotion expenses. We find that a sum of Rs. 3.30 lakhs was spent on the gift items which was covered under Rule 6B. Such expenses cannot be treated as entertainment expenses. The balance expenditur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sallowance was upheld by the ITAT. On going through the order of the ITAT for assessment year 1995-96 rendered in ITA No. 315/Del/99, referred to above, it is found that after considering the details of foreign travelling expenses etc., the Tribunal dismissed the ground of appeal raised by the revenue and upheld the findings of the CIT(A). In view of the above, the issue stands covered by the earlier order of the Tribunal. Otherwise also the assessee has placed entire material on record including the details of foreign travelling expenses, details of the visits and copy of the resolution of the Board of Directors permitting the wives of the Executive Directors and Joint Directors to accompany them at the time of travelling. The Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iwali expenses. The learned CIT(A) deleted the addition by following the orders of his predecessor for earlier years. The relevant findings of the learned CIT(A) are contained in para 10 of his order. 8.1 The learned CIT(A) pointed out that this issue is also covered in favour of the assessee by the order of the Tribunal dated 13-10-2003 for assessment year 1995-96 rendered in ITA No. 501/Del/99. 8.2 We have carefully considered the entire material and find that the issue is covered in favour of the assessee by the earlier order of the Tribunal. Hence, following the same we uphold the findings of learned CIT(A). The assessee has also filed details of expenditure. It may also be pointed out that the Department has not treated the expendi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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