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TMI Blog2018 (2) TMI 261X X X X Extracts X X X X X X X X Extracts X X X X ..... June, 2017, for the Assessment Years 2012-13, 2013-14 & 2014-15. 2. As the issues arising in all these appeals are identical, for the sake of convenience, we dispose of these appeals by way of this common order. 3. Facts in brief:- The assessee is a partnership firm and is engaged in the business of trading in spices. The partnership firm has six partners, namely, Sri B. Jain, Smt. B.Jain, Smt. L. Jain, Sri A.K. Jain, Sri J.K. Jain & Smt. S. Jain. It is also stated that Smt. J. Jain, Sri V.Jain & Sri M. Jain, who are family members had managed the three depots of the assessee firm. Another family member, who is also involved in the day to day affairs of the assessee firm, is Sri S.D. Jain. 3.1. The issues that are before us for all the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eques. This evidence was rejected by the ld. CIT(A) on the ground that the photographs were hazy and as they were not submitted before the Assessing Officer. 5.2. I am of the considered opinion that this expenditure should be allowed as the assessee has discharged the burden of proof that lay on it. It is not a case of the Assessing Officer that he had evidence to prove that the expenditure was not incurred for the purpose of business. The amount of Rs. 80,000/- was paid to the Hotel for holding a dealers' conference. In my view, the conclusion drawn by the revenue authorities on facts were based on conjectures. This expenditure has to be allowed. Hence, I allow this ground of the assessee. 5.3. In the result, I.T.A. No. 1815/Kol/2017; As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer. A copy of the same was placed at page no. 32 of the paper book. The Assessing Officer was of the view that this amount of Rs. 72,500/-, was paid for a package tour to Kerala and included accommodation and sight-seeing. As in my view, though the assessee has produced evidences of having undertaken purchase of spices in Kerala during that period, the entire expenditure cannot be allowed, as what was paid for was for a package tour. Hence 50% of this expenditure may be disallowed. Thus, I restrict the disallowance to Rs. 36,250/-. The balance is hereby allowed. 6.2. The second payment is of an amount of Rs. 2,23,487/- for attending a dealers' conference, which was organized in Novatel Hotel at Hyderabad. The assessee has produced evide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is disallowance is hereby deleted. 7. The second ground of disallowance is of supervisory expenses claimed to have been incurred by the assessee. The Assessing Officer disallowed the claim to the extent of Rs. 3,48,626/-, out of a total claim of Rs. 11,68,672/-. Brokerage expenses of Rs. 1,39,758/- was paid to Sri Mukesh Kr. Jain, Rs. 75,958/- paid to Sri Vinod Kr. Jain and Rs. 1,32,910/- paid to Smt. Jayshree Jain, were disallowed by the Assessing Officer. The claim of the assessee that these three persons were looking after sale of three outlets of M/s. J.K. Lifestores, was disbelieved as they were related parties. The assessee claims that they had rendered services and payments were made to them through account payee cheques in lieu of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had registered a brand name "JK" and was aggressively building up the brand anme and hence zonal dealers' meet were held. 8.1.1 In my view, this expenditure has been incurred wholly and exclusively for the purpose of business. The assessee in its paper book, pages 72 & 76 as well as 36 to 41 and page 77 has submitted evidence in support of incurring these expenditure. The Assessing Officer does not have any evidence to contradict the claim of the assessee. Hence, I direct that the above expenditure be allowed. 9. In the result, I.T.A. No. 1816/Kol/2017; Assessment Year: 2013-14 is allowed in part. I.T.A. No. 1817/Kol/2017; Assessment Year: 2014-15 10. First Ground is against the disallowance of an amount of Rs. 3,26,925/-, out of the t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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