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TMI Blog2010 (7) TMI 1110X X X X Extracts X X X X X X X X Extracts X X X X ..... nates from the order passed by the Commissioner of Income-tax (Appeals), Faridabad, in Appeal No. 66/04-05 dated 08.03.2010, pertaining to assessment year 2001-02. The revenue has taken three substantive grounds in the appeal, which read as under:- (i) On the facts and in the circumstances of the case, the ld. CIT(A) has erred on facts and in law in allowing deduction of ₹ 19,65,000/- cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f ₹ 25,869/-, ₹ 58,269/- and ₹ 36,711/- made by the Assessing Officer on account of telephone and car expenses ignoring the real life factual proposition that possibility of incurring expenses on telephone and car for non-business purposes could not be absolutely ruled out and is contrary to the decision of Hon ble Madras High Court in the case of CIT Vs. Chitram Co. (P) Ltd. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it of enduring nature. The samples were prepared for getting the order from various companies, i.e., Mahindra Mahindra, Balero Scorpio; and Tata Indica. The samples were sent for approval of the product and thereafter the product was produced. Therefore, an expenditure incurred on samples and on castings for preparing the samples cannot be held capital in nature. I further note that the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration or which parties were contacted by Mr. G.K. Soni during the year under consideration. There is no dispute that payments were made through account payee cheques. However, the onus lay upon the assessee to prove that the expenses incurred were for the purpose of business. Therefore, I restore this matter to the file of AO to re-examine the issue after affording proper opportunity to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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