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TMI Blog2016 (1) TMI 719X X X X Extracts X X X X X X X X Extracts X X X X ..... ismissed as not pressed. 3. Ground No.2 raised by the assessee in their appeal and ground Nos 1 to 3 raised by the revenue in its appeal can be conveniently decided together. These grounds read as follows :- Assessee's Grounds of appeal "2. Under the facts and circumstances of the case the Ld. Commissioner of Income tax (Appeals)-XXXVI, Kolkata has erred in law as well as in fact in confirming the disallowance and addition of an expenditure of Rs. 1,38,32,946/- for Business/Sales promotion Expenses." Revenue's Grounds of appeal "(1) That on the facts and circumstances of the case the learned CIT(A) has erred in deleting addition of Rs. 2,66,66,749/- out of total disallowance/addition of Rs. 4,16,65,896 made by AO in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for business promotion and sales promotion were not required to be incurred by the assessee. He, therefore, held that the aforesaid expenses were unwarranted and unjustified. 5. Before CIT(A) the assessee filed all the required evidence which were also before the AO and submitted that the expense in question was wholly and exclusively incurred for the purpose of business of the assessee. 6. The CIT(A) after taking consideration of the photo copies of the bills and evidences of payment of the expenses through banking channels concluded as follows:- "Matter was examined in details. Appellant was asked to produce all bills relating to business promotion and sales with various schemes. Appellant produced all bills relating to sales promotio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chers in respect of the entire sales promotion expenses. The CIT(A)'observation that the appellant had produced all bills relating to sales promotion except to the extent of Rs. 1,38,32,946/- is there fore incorrect. It is further noticed that in respect of payment made to P.A.Time Industries, no bills and vouchers have been filed. The payments to this party totalling Rs. 8,70,000/- is negligible compared to the volume of expenditure incurred by the assessee under this head. Even in respect of this expenditure the payment in question has been made by account payee cheques. A perusal of the bills and vouchers shows that the expenditure in question has been incurred on purchase of gift items. Thus it is clear that the assessee has establi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firm. So, no branch was left without any staff at any point of time. However, if only salary register is considered, it may happen that it will portray that a branch is running without any staff at any particular point of time. But the actual situation is not so. The Assessee pointed out that the Ld. AO has considered the salary register for the month of March, 2007 only. For that reason the Ld. AO has arrived at a wrong conclusion that for 17 branches there was no staff of the firm. The Assessee also pointed out that there are bound to be some expenses for the maintenance of the branches like Rent, Electricity, Stationery and Travelling etc. Also, through the 17 branches (as mentioned by the Ld. A.O. in his assement order) business was gen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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