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TMI Blog2015 (12) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... een carried out on the facts of this case. We, therefore, approve the conclusions arrived at by the CIT(A) and decline to interfere in the matter. - Decided against assessee. Disallowance of expenditure on club membership etc. - Held that:- We find that the expenses in question are in respect of renewal/annual fee for credit card issued to Shri M.T. Tahakkar and Shri N.J. Thakkar. These are not as such, club expenses. It is also not in dispute that these cards were used for the purposes of business of the assessee. In view of these discussions, as also bearing in mind entirety of the case, we uphold the grievance of the assessee and direct the Assessing Officer to delete the impugned disallowance. - Decided in favour of assessee. Disa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee appellant has challenged correctness of learned CIT(A) s order dated 4th November 2010, in the matter of assessment under section 143(3) of the Income Tax Act, 1961 ( the Act hereinafter) for the Assessment Year 2005-06. 2. Ground no.1 is not pressed and is, accordingly, dismissed for want of prosecution. 3. In ground no.2, the assessee has raised the following grievance:- 2. Ld CIT(A) erred in law and on facts in confirming disallowance of claim of bad debt of ₹ 8,00,000/- made by AO though the amounts have been written off in the books of accounts by the appellant. Both the lower authorities failed to appreciate the fact that the advances written off were made out of commercial expediency and complete detai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see carried the matter in appeal before the ld. CIT(A) but without any success. The assessee is not satisfied and is in further appeal before us. 6. Having heard the rival contentions and perused the material on record, we are of the considered view that while loss on account of writing off the trade advances is, in principle, admissible as deduction under section 28 of the Act, in the light of the law laid down by Hon ble jurisdictional High Court in the case of CIT vs. Abdul Razak Co. (136 ITR 825), the factual elements embedded in stand of the assessee remain unsubstantiated. It is for the assessee to demonstrate at least by way of corroborative evidences, that the amounts were advanced in the course of, and for the purposes of busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese discussions, as also bearing in mind entirety of the case, we uphold the grievance of the assessee and direct the Assessing Officer to delete the impugned disallowance. 11. Ground no.3 is thus allowed. 12. In ground nos.4 to 7, which we will take up together, the assessee has raised the following grievances :- 4. Ld. CIT(A) has erred in law and on facts in confirming disallowance of ₹ 55,234/- out of staff welfare expenses by AO on adhoc basis without appreciating the fact that these expenses were incurred for providing lunch, tea/coffee to staff members. Ld. CIT(A) ought to have allowed the same. 5. Ld. CIT(A) has erred in law and on facts in confirming disallowance of ₹ 79,695/- out of travelling expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the applicable legal position. 15. We find that the assessee before us is a corporate entity and as such there cannot be any personal expenses, as is held by Hon ble jurisdictional High Court in the case of Sayaji Iron Engineering Co. Vs. CIT (253 ITR 749). The disallowances out of staff welfare expenses, travelling expense and pooja expense are purely on adhoc basis and there is no cogent basis, save and except for generalities, for the same. We are unable to see any legally sustainable merits in the same. In view of these discussions, we consider it fit and proper to delete the impugned disallowances. The assessee gets the relief accordingly. 16. Ground nos.4 to 7 are thus allowed. 17. In ground no.8, the assessee has raised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... horities below, and, therefore the matter can be remitted to the file of the Assessing Officer for this purpose. Learned Departmental Representative does not seriously oppose this prayer but submits that the matter should be left open, without any observations on the merits. In view of thee discussions, and with the consent of the parties, the matter stands restored to the file of the Assessing Officer for adjudication de novo. 21. Ground no.8 is thus allowed for statistical purposes. 22. In ground no.9, the assessee has raised the following grievance: 9. Ld. CIT(A) has erred in law and on facts in confirming addition made by AO of ₹ 37,104/- making applicable provisions of section 41(1) of the Act. Both the lower authoriti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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