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TMI Blog2011 (4) TMI 178X X X X Extracts X X X X X X X X Extracts X X X X ..... rring those expenses. This aspect remained to be controverted in the appellate order." 3. Brief facts of the case are that it is noted by the Assessing Officer in the assessment order that the assessee company has debited a sum of Rs.7,28,699/- under the head cost of "Testers Unit". When the Assessing Officer raised the questions, it was submitted by the assessee before the Assessing Officer that in the cosmetics business, the customers want to try the products on them before purchasing the same. It was submitted that the amount of Rs.7,28,699/- was debited towards cost of Testers Unit because three testers were supplied to retailers along with customs duty and clearing and forwarding charges paid on the same. Similarly, it is noted by the Assessing Officer that the assessee company has debited an amount of Rs.15,26,720/- under the head cost of "Merchant Display". When the Assessing Officer made enquiries, it was submitted by the assessee before the Assessing Officer that the items debited under the head merchant display includes shopping bags, spatula, wipes, lacquer applicators, disposable sponges, disposable lipgloss applicators, disposable liquid liner, MAC plastic bags ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nefit breaks down (Empire Jute Co. Ltd. v. CIT (SC) 124 ITR 11. The ratio of the decision of the Delhi High Court in the case of CIT v. Salora International Ltd. at 308 ITR 199 is also applicable to the present case. Applying the ratio of the decisions of the Hon'ble Courts to the facts of the appellant's case the disallowance made by the Assessing Officer for Rs.22,55,419/- (Rs.7,28,699/- + Rs.15,26,720/-) on this account is deleted." 7. From the above para of Ld. CIT(A)'s order, we find that a clear finding has been given by Ld. CIT(A) that the nature of expenditure incurred in assessee's line of business is absolutely essential for day today conduct of the business of the assessee company and the same is allowable as revenue expenditure. This findings of Ld. CIT(A) could not be controverted by the Ld. DR of the revenue and hence, in the light of these facts, we hold that there is no infirmity in the order of Ld. CIT(A). Ld. CIT(A) has referred in the same para that the ratio of the decision of Hon'ble Delhi High Court rendered in the case of CIT v. Salora International Ltd. (supra) is also applicable in the present case but that is not the only basis for deletion of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not ascertainable from the details filed. No details of the said expenses including details as to whether the assessee has contracts with the said parties remained to be furnished before Assessing Officer even at the appellate stage. Thus, the specific adverse comments of the Assessing Officer as mentioned in the remand report remained to be addressed in the appellate order." 9. Brief facts of the case are that it is noted by the Assessing Officer on page No.2 of the assessment order that the assessee company was asked to furnish details of payments made where the provisions of section 40(a)(ia) of the Act are applicable and details of TDS payment thereof. Thereafter, it is noted by the Assessing Officer that the assessee company has filed details of TDS only on expenses under the head salary, legal and professional expenses and such details for other expenses were not given. Thereafter, it is observed by the Assessing Officer that the assessee company did not furnish the complete details of expenses debited under the head "Promotional Expenses" amounting to Rs.38,23,227/- and it also did not furnish the details of TDS on this amount. The Assessing Officer disallowed this e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is also rejected. 14. Ground No. 4 of the revenue's appeal is as under:- "4. On the facts and in the circumstances of the case, the CIT(A) has erred in deleting the disallowance of legal expenses of Rs.1,17,830/- overlooking the fact that the said expenses were substantively incurred for consultation for increase of capital and other capital related matters. It is not appreciated that during the year the capital has been increased from 1 lakh to Rs.47,79,947/- and the same was received from outside India. It is clearly evident from the impugned bill that the professional mainly charged the fee for making consultation with the RBI." 15. Brief facts of the case are that it is noted by the Assessing Officer in the assessment order that the assessee company has claimed a sum of Rs.1,17,830/- as legal expenses. Thereafter, it is observed by the Assessing Officer that from verification of details, it was found that these expenses were for consultation for increase of capital and other capital related matters. The Assessing Officer has also observed that the assessee company is not an industrial undertaking and hence these expenses of Rs.1,17,830/- are disallowed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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