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TMI Blog2013 (5) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... wise of the addition, in our considered opinion, the ends of justice would meet adequately and the matter is restored to the file of AO. Disallowance towards foreign traveling expenses – As per AO assessee could not co-relate the above foreign traveling expenses with the business purpose – Held that:- Disallowance has been made in respect of foreign visits conducted by Shri Anil Soni, who was neither a partner nor an employee of the assessee-firm. The assessee failed to place on record any evidence co-relating the above visits. In the absence of any nexus, we are of the considered opinion that the said disallowance of was rightly confirmed. - decided against the assessee. Adhoc disallowance of telephone expenses - AO made this ad hoc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s interest on motor car loan. - addition deleted - in favor of assessee. - ITA No.1921/Mum/2012 - - - Dated:- 5-4-2013 - Shri R. S. Syal, AM And Shri Sanjay Garg, JM,JJ. For the Appellant : Shri Pankaj M. Parikh For the Respondent : Shri Rajarshi Dwivedy ORDER Per R. S. Syal (AM) : This appeal by the assessee emanates from the order passed by the Commissioner of Income-tax (Appeals) on 27.12.2011 in relation to the assessment year 2007-2008. 2. The first ground is against the confirmation of disallowance of Rs.4,06,562 made by the Assessing Officer towards labour charges paid to three parties. The facts apropos this ground are that the assessee debited a sum of Rs.8,30,796 as labour charges. During the course of assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Without going into the merits or otherwise of the addition, in our considered opinion, the ends of justice would meet adequately if the impugned order on this issue is set aside and the matter is restored to the file of A.O. We order accordingly and direct him to decide this issue afresh as per law after allowing a reasonable opportunity of being heard to the assessee. Needless to say the assessee would be entitled to place on record any material in support of its case. 4. Second ground of the appeal is against the confirmation of disallowance of Rs.3,80,717 towards foreign traveling expenses. During the course of assessment proceedings, it was noticed by the A.O. that the following expenses were shown to have been incurred on foreign t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtner nor an employee of the assessee-firm. The assessee failed to place on record any evidence co-relating the above visits with the business purpose. The general submission that Shri Anil Soni visited foreign countries in connection with business purpose, cannot be accepted. In the absence of any nexus between the foreign visits of Shri Anil Soni and business purpose having been proved before us, we are of the considered opinion that the said disallowance of Rs.3.80 lakh was rightly confirmed in the first appeal. This ground is not allowed. 6. Ground no.3 has two parts. First is the adhoc disallowance of Rs.30,000 out of total telephone expenses amounting to Rs.1,84,272. The Assessing Officer made this ad hoc disallowance for the simple ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the assessee did submit bills / vouchers at the assessment stage in respect of these expenses. The learned AR showed us a copy of the letter furnished before the Assessing Officer in support of submitting the details / vouchers etc. of these expenses. The learned Departmental Representative could not place on record anything contrary to that. In our considered opinion, there is no logic in sustaining any ad hoc disallowance more so when the assessee produced bills / vouchers in respect of the small expenses under different heads totaling around Rs.75,000. This ground is allowed. 10. Last ground of the appeal is against the confirmation of disallowance at 1/5 of interest on motor car loan of Rs.7,108. The assessee incurred a sum of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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