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TMI Blog2014 (2) TMI 1284X X X X Extracts X X X X X X X X Extracts X X X X ..... as for the purpose of business purpose - Held that:- It is not a case of the Assessing Officer that the expenditure has not been incurred. Since the assessee has established the expenditure incurred on account of commercial expediency, so the commercial expediency is to be viewed from the view point of businessman / assessee. The facts on record indicate the impugned expenditure is on account of public visits of State ministers, local elected representatives and other dignitaries to the city of Nashik and the premises of society, who have helped the assessee in getting more contracts for labour, therefore, commercial expediency established. In the facts and circumstances, the expenditure was rightly made by the assessee for business purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion u/80P(2)(a)(vi), when in fact the assessee itself is not a Cooperative society but a District Federation of Labour Cooperative Societies and the income earned by the Federation cannot be said to be attributable to the collective disposal of labour of its members as contemplated in section 80P(2)(a)(vi) of the I.T. Act, 1961. 04. In the facts and in the circumstances of the case the learned CIT (A) is not justified in holding that Advertisement expenses of ₹ 1,68,600/- is wholly and exclusively for the growth of business because as per statutory audit report it was attributable to the activities of the Society and the assessee also could not justify the claim of expenses. 05. The order of the Ld. CIT (A) be cancelled and that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) and submitted that this issue is covered in assessee's own case for A.Y. 2007-08 in ITA No.195/PN/2011, wherein, this issue was decided in favour of assessee by observing as under: "3. After hearing the learned DR and perusing the material on record, we find that the Assessing Officer has not allowed the deduction despite the fact that in assessee's own case in ITA No. 1064/PN/1984 dated 5-5-2006 for A.Y. 1980-81 the Tribunal allowed the claim of deduction u/s 80P(2) of the Act. 4. We further find similar disallowances were made by the Assessing Officer in subsequent assessment years but the Tribunal vide its order in ITA No. 495/PN/2006 for A.Y. 2003- 04 dated 30-6-2008 and in ITA No.1336/PN/2008 for A.Y.2005-06 dated 28-11-2008 has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is a settled legal position that by way of expenditure businessman's business may be benefitted in a number of ways. The assessee who can see the reasonability of the expenditure incurred in question in the interest of business, so the payment has to be viewed in the larger interest or expediency of assessee's business. The assessee has incurred expenditure of Rs. 3,32,320/- on account of advertisement in said year and the same was claimed in the nature of business. It was submitted that certain dignitaries visited the organization and assessee was required to incur expenses out of commercial expediency by giving wide publicity of such visits in the local print media in order to derive certain commercial benefits. The assessee claimed tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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