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TMI Blog2016 (6) TMI 481X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO") u/s 143(3) of the Income Tax Act,1961(hereinafter called "the Act"). 2. The grounds raised by the assessee in the memo of appeal filed with the Income Tax Appellate Tribunal, Mumbai (hereinafter called "the Tribunal") read as under:- 1. On the facts and in the circumstances of the case and in law, the Honourable CIT(A) has erred in confirming adhoc disallowane of Sundry Expenses of Rs. 50,000/- u/s. 37 of the Income Tax Act, 1961. He ought not to have done so. 2. On the facts and in the circumstances of the case and in law, the honourable CIT(A) has erred in disallowing foreign travel expenditure of Rs. 2,36,218/- overlooking the submissions made by assessee. He ought not to have done so. 3. Without prejudice to ground no. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g bills/vouchers. As per the AO the nature of expenses are such that personal element cannot be ruled out and in view of this 20% of the above expenses to the extent of Rs. 1,74,520/- was disallowed and added back to the total income of the assessee by the AO, vide assessment orders dated 30-11- 2012 passed by the AO u/s 143(3) of the Act. 5. Aggrieved by the orders dated 30-11-2012 passed by the AO u/s 143(3) of the Act , the assessee preferred an appeal before the CIT(A). 6. The assessee in the first appeal submitted before the CIT(A) that all expenses were supported by bills and vouchers and submitted complete details. With respect to sundry expenses and each heads of expenses, supporting bills and vouchers were submitted by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... towards cost of mineral water and balance expenses of Rs. 1,10,350/- is to be paid towards leave and license agreement. Wedding gift of Rs. 17,506/- represents chandlas/gifts given to the employees of the firm or business contacts on the occasion of their children's marriage. Similarly, for staff welfare expenses, most of these expenses are in the nature of reimbursement of expenses like washing allowance of Rs. 10,100/-paid to peons since they attend to outdoor work. Conveyance expenses of Rs. 2,03,400/- reimbursed to audit staff and tea, snacks , lunch expenses of Rs. 75,110/- reimbursed to all persons for working on holidays or weekends or outdoor work during lunch time. Such reimbursements were made on the basis of office vouchers. Staf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the partners are covered by the definition of 'business purposes' so as to make the said expenditure as allowable deduction. Therefore it was held by the CIT(A) that it cannot be held that the said expenditure was incurred wholly and exclusively for the purpose of business or profession and hence the disallowance was enhanced from Rs. 1,74,520/- to Rs. 2,36,218/-, vide orders dated 21.3.2014 passed by the CIT(A). 8. Aggrieved by the orders dated 21.03.2014 passed by the CIT(A), the assessee has filed the second appeal before the Tribunal. 9. The assessee reiterated the submissions as were made before the authorities below. The submitted that the sundry expenses of Rs. 50,000/- has been disallowed by the CIT(A) on the grounds that element ..... X X X X Extracts X X X X X X X X Extracts X X X X
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