9911796707
TMI Blog2015 (10) TMI 931X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfactory explanation of such increase. Having regard to these facts of the case, we are of the view that some disallowance out of various expenses claimed by the assessee was called for and the ld. CIT(A) was not justified in deleting the entire disallowance made by the AO out of various expenses. At the same time, we find that the disallowance of ₹ 42,11,983/- made by the AO on this count was excessive and unreasonable in the facts and circumstances of the case. In our opinion, it would be fair and reasonable that disallowance of ₹ 5,00,000/- is made out of various expenses claimed by the assessee. Accordingly, we sustain the disallowance made by the AO out of various expenses to the extent of ₹ 5,00,000/- - Decided p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has debited various expenses to the profit and loss account for the year under consideration which were substantially higher than the expenses claimed in the earlier two years as given here under: Sr. No. Particulars A.Yr.2008-09 A.Yr.2007-08 A.Yr.2006-07 1. Office expenses 34,22,491 31,68,219 6,60,717 2. Factory expenses 37,34,407 33,19,362 13,10,845 3. Travelling conveyance expenses 53,15,741 47,90,534 1,74,790 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld have been ₹ 22,86,376/- as against ₹ 37,34,407/- claimed by the assessee. Accordingly, a sum of ₹ 14,48,031/- (37,34,407/--22,86,376/-) is hereby disallowed. iii) Travelling Conveyance Expenditure The assessee has offered no explanation for the increase in the expenditure on account of travelling conveyance expenditure. Thereby on basis of A.Y.2007-08, 20% of travelling of travelling conveyance expenditure is hereby disallowed. Accordingly, a sum of ₹ 10,63,148/- is added back to the total income of the assessee. iv) Postage and telephone expenses The assessee has not offered any explanation for the reason for increase in the said expenses. Further, the expenses debited by the assessee are purely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing on record so as to show the manner in which the assessee has sponsored any sports events and how the same is related to the business of the assessee. Accordingly the expenditure incurred by way of sponsoring sports events is disallowed. The disallowance comes to ₹ 3,90,196/-. The claim of the expenditure incurred on Mahaprasad on pooja occasions at public worship is basically of religious nature and would not amount to advertisement expenses. Accordingly, the claim of expenses on account of Mahaprasad for ₹ 8,85,664/-. 6. Accordingly, a total disallowance of ₹ 42,11,983/- was made by the AO out of various expenses claimed by the assessee. On appeal, the ld. CIT(A) deleted the said disallowance made by the AO on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... action of the ld. CIT(A) in deleting the disallowance of ₹ 3,19,422/- made by the AO pertaining to advertisement sales promotion expenses. 9. At the time of hearing before us, ld representatives of both the sides have agreed that this issue is squarely covered in favour of the assessee by the decision of Co-ordinate Bench of this Tribunal in assessee s own case for A.Y. 2006-07 rendered by its order dated 18/04/2012 passed ITA NO.1162/Mum/2010, wherein the similar disallowance made by the AO was held to be not sustainable by the Tribunal. Respectfully following the decision of the Coordinate Bench of this Tribunal in assessee s own case for A.Y.2006-07, we uphold the impugned order of the ld. CIT(A) deleting the disallowance mad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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