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TMI Blog2013 (3) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... uine. There was no reason, without verification of the record to decline the remaining amount as well. Therefore, the distribution expenses have rightly been allowed by the Tribunal. Such finding does not give rise to any question of law as it is finding of fact as to whether the assessee is entitled to the entire claimed amount as distribution expenses or not. - I.T.A. No.287 of 2012 (O & M) & I.T.A. No.298 of 2012 (O & M) - - - Dated:- 21-2-2013 - Hemant Gupta And Ritu Bahri,JJ. Mr. Rajesh Katoch, Advocate for the appellant(s). JUDGMENT C.M. No.30249-CII of 2012 in ITA No.287 of 2012 Application is allowed as prayed for. C.M. No.31482-CII of 2012 in I.T.A.No.298 of 2012 Application is allowed as prayed for. C.M. No.314 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd M/s Majestic Communication, Moga. Despite being given ample opportunities both to the A.O. and the appellant neither the A.O. nor the appellant could state that how much expenses related to sales of E-Tops, Recharge Coupons and Sims. Hence, under the circumstances, at the best it would be fair and justifiable to restrict the disallowance to the extent of 60% and balance 40% is directed to be deleted. The Revenue as well as Assessee filed separate appeals aggrieved against the order passed by the Commissioner of Income Tax (Appeals). The Tribunal accepted the Assessee's appeal while dismissing the appeal of the Revenue. The Tribunal returned the following finding:- 10. After hearing the parties and perusal of the record, we are of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. Learned counsel for the appellant has vehemently argued that the assessee has failed to produce any documents to justify the distribution expenses, therefore, such expenses could not be allowed by the Tribunal on arbitrary basis. We do not find any merit in such argument. The Commissioner of Income Tax (Appeals), Ludhiana, recorded a finding that the Assessing Officer has reported that the voluminous nature of entries cannot be verified. Once the Assessing Officer himself has failed to verify the entries, there is no reason to disallow the distribution expenses. It is a rule of thumb which was applied by the Commissioner of Income Tax (Appeals), Ludhiana to allow expenses to the tune of 40%, which has been found to be unjustified by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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