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TMI Blog2012 (7) TMI 682X X X X Extracts X X X X X X X X Extracts X X X X ..... not related with the assessee’s business - in favour of assessee. Disallowance of business promotion expenses - Held that:- Since all the vouchers and books of account were produced before AO but he has not pointed out any mistake in the account and has disallowed the above amount on adhoc basis - although the matter had been remanded to the AO he has not given any comment on it - in favour of assessee. - I.T.A. No. 2927/Del/2011 - - - Dated:- 25-5-2012 - SHRI A.D. JAIN, SHRI SHAMIM YAHYA, JJ. Assessee by : Sh. Sanjiv Sapra, FCA Department by : S h. R.S. Negi, Sr. D.R. ORDER PER SHAMIM YAHYA: AM This appeal by the Revenue is directed against the order of the Ld. Commissioner of Income Tax (Appeals)-XVIII ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he foreign trips of Mr. Prem A. Bhawnani are to other destination also. Assessing Officer summarized the reasons as under for making the disallowance. a) Sh. Prem A. Bhawanani is neither an employee nor a Director of the assessee company. b) Assessee company has failed to establish that expenditure of more than Rs. 19 lacs reimbursed to Mr. Prem A. Bhawani for foreign travelling was incurred wholly and exclusively for the business of the assessee. c) That it failed to produce even bills and vouchers of travelling and conveyance expenses, amounting to Rs. 4,50,000/-. 4. Before the Ld. Commissioner of Income Tax (Appeals) assessee submitted that complete details of travelling and conveyance expenses and bills and vouchers for major ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt enquiry. Ld. Commissioner of Income Tax (Appeals) found that the arguments of the Assessing Officer that the assessee has made purchases mostly from Singapore and USA and hence the travel expenses to other countries are not allowable, is fallacious since so long as the visits have been made for the purpose of business it is an allowable expenditure even though such visit has not resulted in any immediately purchase from the said countries. Ld. Commissioner of Income Tax (Appeals) further noted that attending trade fairs and exhibitions in the line of the assessee s business in other countries cannot be said to be not related with the assessee s business. Accordingly, Ld. Commissioner of Income Tax (Appeals) found that the disallowance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er noted that assessee could not produce all the bills and vouchers. He found that bills / vouchers of approx. Rs. 1,80,000/- were not produced. So the Assessing Officer made the disallowance of Rs. 1,80,000/- in this regard. 8. Before the Ld. Commissioner of Income Tax (Appeals), it was submitted that all the vouchers and books of account were produced before the Assessing Officer and Assessing Officer has not pointed out any mistake in the account and has disallowed the above amount on adhoc basis. Ld. Commissioner of Income Tax (Appeals) noted that although the matter had been remanded to the Assessing Officer, the Assessing Officer has not given any comment on it. Considering the above facts and circumstances, Ld. Commissioner of Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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