9911796707
TMI Blog2011 (11) TMI 732X X X X Extracts X X X X X X X X Extracts X X X X ..... The appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals), Karnal dated 18.03.2011 relating to assessment year 2007-08 against the order passed u/s 143(3) of Income Tax Act, 1961. 2. The first issue raised by the assessee is against the addition of ₹ 2 lacs out of commission. The grievance of the assessee is that the said addition has been made summarily wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reference was made to the reply filed during the assessment proceedings dated 13.5.2009. The Assessing Officer in the remand report pointed out that from the perusal of the two bills filed by the assessee, it is apparent that the sale has been made in cash and the addresses on the said cash bills were not complete and hence the disallowance of ₹ 2 lacs was warranted. It was explained by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account maintained by the assessee in the normal course of carrying on the business records the above transactions of both the receipt of commission and payment of the commission to the retailers/frenchises. 6. From the perusal of the evidence placed by the assessee in the Paper Book filed, we find that the assessee had purchased sim cards/recharge coupon from the BSNL. The copies of the bills o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against the partial disallowance of expenditure under various heads on account of personal use. The Assessing Officer while completing the assessment had disallowed 1/5th of the expenses under the following heads : Nature of Expenditure Total Expenditure Amount Disallowed Car running, insurance and depreciation Rs.2,59,221/- Rs.51,844/- Telephone Rs.1,70,402/- Rs.34,080/- Advertisement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 3,09,917/-, out of which ₹ 40, 000/- was disallowed. We find no merit in any disallowance being made out of staff welfare expenses of ₹ 1,61,730/-. However in respect of expenditure incurred on entertainment totaling ₹ 1,48,187/-, sum of ₹ 10,000/- is disallowed for personal use. Ground of appeal No.2 raised by the assessee is partly allowed. 12. In the result, the app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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