9911796707
TMI Blog2014 (6) TMI 395X X X X Extracts X X X X X X X X Extracts X X X X ..... hing a person intending to import would obtain, which is a matter of simple procedure, while the assessee waits for years to do so - The other two trips during the year, i.e., in May and June, 2005 and December, 2005, expenditure on which is being claimed, are by the assessee’s father, and toward which no explanation stands furnished at any stage - The assessee has also not advanced any reason toward admission of additional evidence - any credence to the assessee’s claims cannot be made and the disallowance of the expenditure is upheld in-as-much as the assessee has clearly failed to prove the same as being incurred for business purposes, much less wholly and exclusively – thus, the disallowance id sustained on the basis of the finding of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for facilitating purchases and expanding the business in general. However, the names of the parties he met during his foreign visit/s could not be furnished. The entire purchases were made locally from one party, M/s. Chhuttanlal Mattumal ( M/s. CM for short), a firm in which the assessee s father, Shri Anil Kumar Gupta, is a partner. The said firm had also booked expenses on foreign travel at Rs.5,15,350/- for the current year. Similarly, the assessee s entire sales were also local. Further, a scrutiny of the expenditure revealed that a convention hall had been booked for 11.10.2005 for meeting the suppliers, incurring expenditure on tea, refreshments, etc. on that day for 45 persons. However, at the same time, car rental bills showed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only has the assessee been totally unable to prove the business purpose of the impugned expenditure, his case stands thoroughly discredited by the adverse, definitive findings by the authorities below. The firm M/s. CM is, as apparent, long established in the trade. It has undertaken foreign travel for the purpose of its business, i.e., purchase of flowers or toward developing more avenues therefor, during the current year. It importing flowers from Thailand, would have a stable supply chain/mechanism, which is in fact manifest from the organization of a full day conference at a hotel (Hotel Intercontinental) in Bangkok on 11.10.2005 for meeting current and prospective suppliers. In fact, the same would have only being preceded by, as state ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearly unable to place any credence to the assessee s claims and, accordingly, confirm the disallowance of the expenditure in-as-much as the assessee has clearly failed to prove the same as being incurred for business purposes, much less wholly and exclusively. The assessee has also relied on some case law. We are unable to appreciate the same, even as none was referred to during hearing. The disallowance in the instant case stands sustained by us on the basis of the finding of a complete absence of the discharge of the burden of proof u/s. 37(1), a matter of fact, so that the said reliance would be of no moment. We decide accordingly. 6. In the result, the assessee s appeal is dismissed. Order pronounced in the open court on May 28, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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