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TMI Blog2014 (2) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... any supporting on record, the expenses claimed cannot be allowed – Decided against Assessee. Disallowance of Travelling expenses of MD’s wife – Held that:- Merely because Mrs. Kirti Sabharwal happens to be wife of the MD of the assessee company, the expenditure incurred on behalf of her cannot be disallowed when she had undertaken the tour of Singapore to attend the International Trade Fair 2003 - the expense incurred by MD is being allowed by the Assessing Officer –the expenses incurred for the same purpose of another Director Mrs. Kirti Sabharwal cannot be disallowed – Thus, the disallowance set aside - Decided in favour of Assessee. Adhoc disallowance of Running and Maintenance of Vehicles – Legal & Professional Charges - Held th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Rs.251259/- as against total disallowance of Rs.298120/-, made by the learned AO in his Assessment Order passed u/s 143(3) of Income Tax Act 1961 by applying the same basis for such disallowance as by the learned AO i.e. disallowing expenditure purely on arbitrary and ad hoc basis. Therefore, the said addition is liable to be deleted. 3. Learned A.R. of the assessee reiterated the same arguments which were raised before the learned CIT (A). As against this, learned D.R. of the Revenue supported the orders of the authorities below. 4. We have considered the rival submissions, perused the material available on record and gone through the orders of the authorities below and we find that the submissions of the assessee before us is tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ticket for doctors by a medical company is unethical and against the public policy. Before us also, no evidence has been brought on record to show that the amount claimed to have been incurred through the Managing Director is supported by any evidence and what is the nature of expenditure. This also could not be shown to us that there was any business purpose for visits to Sri Lanka, Maldives and Munich. The assessee has filed a paper book of 137 pages and has enclosed the copy of ledger account of sales promotion expenses but there is no evidence brought on record before us regarding the nature of expenses and evidence thereof. Considering all these facts, we do not find any reason to interfere with the order of learned CIT(A) on this issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kirti Sabharwal s visit to Singapore. He further submitted that Mrs. Kirti Sabharwal is also a Director and merely for this reason that she happens to be the wife of MD, the expenses incurred cannot be disallowed. 7. Learned D.R. of the Revenue supported the orders of the authorities below. 8. We have considered the rival submissions, perused the material available on record and gone through the orders of the authorities below and we are of the considered opinion that merely because Mrs. Kirti Sabharwal happens to be wife of the MD of the assessee company, the expenditure incurred on behalf of her cannot be disallowed when she had undertaken the tour of Singapore to attend the International Trade Fair 2003 . For the same purpose, the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upported the orders of the authorities below. 12. We have considered the rival submissions, perused the material available on record and gone through the orders of the authorities below. we find that regarding disallowance of 10% out of vehicle running and maintenance, it is stated by learned CIT(A) in para 7.2 of his order that since the assessee has not maintained logbook, such disallowance of 10% is reasonable. We do not find any force in this reasoning given by learned CIT(A) because the assessee is a private limited company and therefore, even if some expenditure is incurred for the personal benefit of the Director or employee of the company, then such expenses can be considered as perquisite in the hands of the concerned Director/em ..... X X X X Extracts X X X X X X X X Extracts X X X X
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