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TMI Blog2009 (7) TMI 1282X X X X Extracts X X X X X X X X Extracts X X X X ..... ted in these applications, we condone the delay in refilling the appeals. 3. In all these appeals, common question is raised qua the same assessee. For this reason, Mr. Sanjeev Sabharwal, learned counsel appearing on behalf of the appellant, made consolidated arguments covering all these appeals. The assessee is a partnership firm and is engaged in the business of trading. Main business activities of the assessee is to act a commission agent of M/s. Marico Industries Ltd., who are the manufacturers of Saffola oil edible oil and non-edible oil (i.e., Hair Care oil). These goods manufactured by M/s. Marico Industries Ltd. are supplied by the assessee to various Army, Air Force and Navy Canteens (CSD Canteens). The assessee receives commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above, the ITAT has affirmed the order of CIT(A) thereby dismissing both the appeals on this aspects. It is not in dispute, and is found as a fact that the aforesaid amount was spent by the assessee in the form of : (a)Gifts to the officials; and (b)Gifts to the customers for sale of various products including sale promotion, schemes, etc. viz., free sample, prizes distribution for the purpose of promotion of the product in CSD Canteens, etc. 5. The ITAT after discussing the findings arrived at by the CIT(A) came to the conclusion that these expenses were, in fact, incurred by the assessee for promotion of the sale of products. The expenses were also accounted for in the books of account maintained by the assessee and no defects or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs for sale of various products. Photographs were also produced to substantiate that lucky draws were held and sale service melas were organized. As per agreement with Marico Industries Ltd., the cost of fee samples, all the prizes distributed by the assessee for the purpose of promotion of the products in CSD canteens, would be borne by the assessee. The assessee had undertaken, the job of promotion of sale of product was also accepted by the CIT(A). The various facts and findings noted by the CIT(A) in his order have not been found to be baseless or his order have not been found to be baseless or uncorroborated. The purchases invoices were also produced by the assessee. No adverse finding was given by the Assessing Officer that the variou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'commission and scheme expenses and business promotion expenses' respectively, and direct the Assessing Officer to allow the same as deduction. Thus, the ground raised by the revenue and by the assessee on these issues relating to the part disallowance of the total payment of ₹ 38,87,055 and ₹ 18,73,588 under the head 'commission or scheme expenses' respectively are dispose of in the manner as indicated above. 6. Mr. Sabharwal submits that insofar as expenditure incurred under the second head, viz., free gifts, samples and prizes to the customers are concerned, he has no quarrel about the same. However, according to him, the ITAT committed an error in not appreciating that amounts spent on gifts given to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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