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TMI Blog2015 (7) TMI 334X X X X Extracts X X X X X X X X Extracts X X X X ..... si Impex Pvt.Ltd. amounting to ₹ 2,45,536/-, the First Appellate Authority observed that total payments during the year to M/s Tulsi Impex P.Ltd. was ₹ 30,45,050/- and this particular bill was produced before him. He relied on number of case laws and on the ground that the A.O. has not pointed out to any infirmity in the bills, vouchers and books of accounts, the disallowance of expenditure incurred for the purpose of business was held as allowable. We do not find any infirmity in this order. All the books are audited and details were produced before the A.O. No infirmity in the evidences produced has been pointed out. Under these circumstances the question of disallowance that the expenditure that too on adhoc basis cannot be allowed. Hence we uphold the detailed and speaking order of the First Appellate Authority on this issue - Decided against revenue. Disallowance on account of sample expenses - CIT(A) deleted the addition - Held that:- These are no grounds to disallow the said expenditure. The expenditure incurred on marketing and advertisement and promotional activities may not result in immediate jump in sales. On a sale of ₹ 33 crores the expenditure in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s were made. 2.1. Aggrieved the assessee carried the matter in appeal. The First Appellate Authority granted part relief. 2.2. Aggrieved, both the assessee and the Revenue are in appeal before us on the following grounds. ITA 277/Del/2013 (Revenue s Appeal): 1. Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) had erred in deleting the addition of ₹ 5 lakhs made by the A.O. on account of foreign travel when the assessee could not file evidence/details to the effect that visits were undertaken for business purposes. 2. Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) was justified in deleting disallowance of ₹ 10 lakhs made by the A.O. on account of freight and cartage when there was abnormal increase in freight and cartage expenses as compared to increase in sales and expenses were not supported by bills and vouchers. 3. Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) was justified in deleting disallowance of ₹ 10,74,962/- made by the A.O. on account of sample expenses when the assessee is dealing in brands, which are very popular a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... our view has been made by the A.O. on presumptions and surmises and is not based on any evidence. Thus, this ground of Revenue is dismissed. 7. Ground no.2 is on the deletion of disallowance on adhoc basis from out of freight and cartage expenses. The First Appellate Authority in this case also recorded that all the payments were made through account payee cheques. Regarding the bill dated 31.3.2009 on Tulsi Impex Pvt.Ltd. amounting to ₹ 2,45,536/-, the First Appellate Authority observed that total payments during the year to M/s Tulsi Impex P.Ltd. was ₹ 30,45,050/- and this particular bill was produced before him. He relied on number of case laws and on the ground that the A.O. has not pointed out to any infirmity in the bills, vouchers and books of accounts, the disallowance of expenditure incurred for the purpose of business was held as allowable. We do not find any infirmity in this order. All the books are audited and details were produced before the A.O. No infirmity in the evidences produced has been pointed out. Under these circumstances the question of disallowance that the expenditure that too on adhoc basis cannot be allowed. Hence we uphold the detailed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... total expenditure of ₹ 9,96,122/- a sum of ₹ 8,66,169/- related to goods that had to be destroyed as these goods had outlived their shelf life. Copies of invoices, challan of customs duty paid, and bill of entry of home consumption for such goods are enclosed in the paper book. In view of the above it has been submitted that the disallowance made by the AO may be deleted. I have considered the submissions of the appellant findings of the AO and facts on record. Perusal of the facts on record show that the appellant has submitted that the goods had to be destroyed as they had outlived their shelf life. There are no evidences on record to show that on what basis it has been determined that the goods had outlived their shelf life and therefore had to be destroyed. No evidences regarding the genuineness of the above expenditure have been submitted by the appellant either during the assessment proceedings or during the appellate proceedings. The appellant had only submitted copies of certain bills which do not substantiate its contention that the above items had no ;value and so had to be destroyed. In view of the findings above and in view of the fact that no e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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