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TMI Blog2014 (1) TMI 1321X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has paid FBT on whole of the customer expenses - vouchers are not available - However, it is also correct that disallowance has been made on higher side – the disallowance of Rs. 2.00 lakhs would meet the ends of justice – order of the CIT(A) set aside and the AO is directed to disallowance of Rs. 2.00 lakhs on account of customer care. Disallowance on account of selling and distribution expenses – Held that:- The disallowance has also been made on excessive basis, thus, the disallowance is restricted to 15% of Sales and Distribution of the expenses - the order of the CIT(A) set aside and the AO is directed to allow 15% of SND expenses. Disallowance on account of Vehicle Running and Maintenance Expenses – Held that:- For persona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 2,19,770/- on account of Vehicle Running and Maintenance Expenses. In the alternative the disallowance is excessive. 6 That the ld. CIT(A) has been unjustified in upholding addition of Various expenses under various Heads on which FBT has duly been paid and assessment of FBT has also been framed at Returned Income under the Provisions of section 115WE(3) resulting into Double Taxation. 7 That any other ground which may be taken up at the time of hearing with the kind permission." 3 Grounds No. 1 7 are of general nature and do not require any separate adjudication. 4 Ground No. 2 - After hearing both the parties we find that during assessment proceedings the AO noticed that the assessee has claimed the expenses of Rs. 2,53, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aining. Further perusal of the details at page 3 of the paper book show that a sum of Rs. 1,15,181 has been incurred which is mainly the amount debited by Maruti Udyog Ltd. on account of training. It can not be denied that some of the employees were going to the company's various areas of operation and since the amount have been debited by the company, therefore, no additional evidence is possible to substantiate this claim. 8.1 As far as a sum of Rs. 1,15,181/- is concerned, the same is required to be allowed. 8.2 As far as other expenses amounting to Rs. 1,44,204/- is concerned, the same has been shown to have been paid in cash to various employees. (details of the same are placed at page 52 of the paper book). First of all there is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stances of the case and the fact that FBT has been paid on part of the expenses, we are of the opinion that if disallowance of Rs. 2.00 lakhs is confirmed, the same would meet the ends of justice. Accordingly we set aside the order of the ld. CIT(A) and direct the Assessing Officer to make disallowance of Rs. 2.00 lakhs on account of customer care. 13 Ground No. 4 - After hearing both the parties we find that this further disallowance of Rs. 3,29,765/- was made out of over Sales Distribution expenses. This disallowance has also been confirmed by the ld. CIT(A). 14 Both the parties made similar l submissions as in respect of ground No. 2. 15 After considering the rival submissions we find that this disallowance has also been made on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the alternative the disallowance is excessive. 4 That the ld. CIT(A) has been unjustified in upholding disallowance of Rs. 72,438/- on account of vehicle Running and Maintenance Expenses. In the alternative the disallowance is excessive. 5 That the ld. CIT(A) has been unjustified in upholding addition of Various expenses under various Heads on which FBT has duly been paid and assessment of FBT has also been framed at Returned Income under the Provisions of section 115WE(3) resulting into Double Taxation." 22 Ground No. 1 is of general nature and does not require any separate adjudication. 23 Ground No. 2 is in respect of training expenses and the facts and arguments of both the parties are same as in Assessment year 2008-09 which we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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