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TMI Blog2009 (2) TMI 819X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee on his travel to Hong Kong and Germany being two places from where he has imported the machinery, should be treated as capital expenditure and in regard to the other travels, which have resulted in purchase of garments, the same should be treated as revenue expenditure. Hence, the finding of CIT(A) on the issue is reversed and AO is directed to allow the assessee the portion of foreign travel expenses in relation to the places from where the assessee has purchased the garments as revenue expenditure and the expenditure in relation to the purchase of machinery i.e., from Germany and Hong Kong as capital expenditure. Therefore, the assessee s appeal are partly allowed. Disallowance of l/10th out of car expenses - HELD THAT:- It is noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee against advance tax from the date on which the assessee made the request for the adjustment and recompute the levy of interest u/s. 234B accordingly. Hence, appeal is held in favour of the assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee had also purchased sample garments during the asstt. yr. 2007-08 for trading in the same. It was a submission that the assessee was dealing in only 100 per cent imported garments. The assessee had made the foreign travel for finding out the foreign manufacturers and foreign suppliers. It was a submission that the assessee had claimed this expenditure on account of foreign travel as a revenue expenditure but the learned assessing authority had disallowed the same on the ground that the expenses were not in relation to a liaisoning business. He submitted that trading in imported garments and the manufacture of the garments, were in extension of the liaison business conducted by the assessee. It was a submission of the assessee that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstances, the finding of the learned CIT(A) on the issue is reversed and the assessing authority is directed to allow the assessee the portion of foreign travel expenses in relation to the places from where the assessee has purchased the garments as revenue expenditure and the expenditure in relation to the purchase of machinery i.e., from Germany and Hong Kong as capital expenditure. In the circumstances, ground Nos. 1.1 and 1.2 of the assessee's appeal are partly allowed. 7. In ground No.2 which is against action of the learned CIT(A) in confirming the disallowance of the car related expenses at 1/10th, the learned Authorised Representative vehemently submitted that the car expenses were exclusively for the purpose of busin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It was a submission that advance tax became due on 15th Sept., 2005 and by this time, the assessee had specifically requested that the seized cash should be adjusted against advance tax. It was a submission that if the seized cash was adjusted towards advance tax, the levy of s. 234B interest would get substantially reduced. He relied upon the decision of this Tribunal in the case of Sudhakar M. Shetty vs. Asstt. CIT (2008) 10 DTR (Mumbai)(Trib) 173 as also the decision in the case of Asstt. CIT vs. Raghu Nandan Lal & Ors. (2003) 79 TTJ (Chd) 192. It was also a submission that the issue was squarely covered by the decision of the Hon'ble jurisdictional High Court of Delhi in the case of CIT vs. K.K. Marketing (2005) 196 CTR (Del) 611: ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n'ble jurisdictional High Court has categorically held that on request for adjusting the seized cash against advance tax due, it should be done and no interest under s. 234B can be charged. We also face with the decision of the Hon'ble Madhya Pradesh High Court in the case of Ramjilal Jagannath & Ors. (supra), wherein it has been held that such request of the assessee for adjustment of the seized cash cannot be made against advance tax but considering the fact that the decision in the case of K.K. Marketing (supra) is by the Hon'ble jurisdictional High Court, it is held that the assessing authority was wrong in not adjusting the seized cash against the advance tax as requested for by the assessee. In the circumstances, respectfu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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