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TMI Blog2016 (11) TMI 1068X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld. CIT(Appeals)-36 by disallowing the same by 50% i.e. Rs. 203400/- but the salary was fully allowed by the first ITO while passing the order for the first time. The salary should be fully allowed as done in the first order. 2. The Ld. Assessing Officer has erred in law and in facts by disallowing commission fully and the CIT(Appeals)-36 by disallowing 50% of the same. It should be fully allowed as full details were provided to the ITO and the CIT(A)-36. The disallowance is without any base and arbitrarily disallowed. 3. The Ld. Assessing Officer and the Ld. CIT(A)-36 have erred in law and in facts by disallowing staff welfare expenses of Rs. 75,419/- fully and 50% respectively but the same was disallowed by the first Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment was completed vide order dt. 30.11.2006 u/s 143(3) determining its total income to the tune of Rs. 18,17,430/-. The appellant carried the matter up to the Tribunal and vide order dt. 12.3.2010 the Tribunal restored the matter before the Assessing Officer for afresh assessment. Subsequently, the assessment proceedings was completed determining the total income to the tune of Rs. 14,34,870/-. The Assessing Officer made the following additions / disallowances:- i Commission : Rs.2,83,700/- ii Salary : Rs.4,06,801/- iii Staff Welfare allowance : Rs.75,419/- iv Sales Promotion Expenses : Rs.3,15,890/- v Travelling expenses : Rs. 88,344/- vi Telephone expenses : Rs. 23,660/- vii Conveyance : Rs. 10,850/- v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the recipient of commissions were not filing the income tax returns on the ground of that they are not having taxable income, therefore, the genuineness of the parties could not be verified. The assessee has produced the record in connection with the employees and the name of the persons to whom the commission was paid. So far as the payment in connection with staff welfare expenses is concerned the same has been paid to the extent of Rs. 800/- per person per month which also seems justifiable. The CIT(A) was of the view that the records seems justifiable and the expenses does not seems on higher sides therefore disallowance was restricted to the extent of 50%. On seeing the peculiar facts and circumstances of the case where the salary of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ever, before the CIT(A) the assessee explained that it was a common practice to organise picnic and group gathering and hold the meeting in hotels for prospective customers in order to attract the business. However, assessee furnished the reasonable details of these expenses in the form of copies of voucher and ledger account etc. Since the 7 years has been lapsed therefore, the assessee did not retain the relevant vouchers. Considering all these facts, the CIT(A) restricted the disallowance to the extent of 50%. The CIT(A) was satisfied with the explanation of assessee. After the expiration of 7 years the record could not be produce properly. However, assessee furnished the reasonable details of these expenses in the form of copies of vouc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... travelling expenses of Rs. 88,344/-, telephone expenses of Rs. 23,660/-, conveyance expenses of Rs. 10,850/-, Office expenses of Rs. 19,770/- and disallowing expenses of HMV Enterprises of Rs. 92,434/- are of the higher side and the end of the justice would be meet if the disallowance be restricted to the extent of 25% of the travelling expenses of Rs. 88,344/-, telephone expenses of Rs. 23,660/-, conveyance expenses of Rs. 10,850/-, Office expenses of Rs. 19,770/- and expenses of HMV Enterprises of Rs. 92,434/-. We ordered accordingly. Accordingly, this issue has been decided in favour of the assessee and against the Revenue. ISSUE NO.10:- 7. This issue is consequential in nature, therefore, is not required to be adjudicated. The intere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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