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TMI Blog2018 (10) TMI 1025X X X X Extracts X X X X X X X X Extracts X X X X ..... avelling expenses. We note that the lower authorities has admitted the genuineness of the expenses to the tune of 75% and the balance was disallowed on ad hoc basis. After considering the facts in totality, we are inclined to confirm the disallowance of total foreign travelling expenses to the tune of 25% i.e. ₹ 1,56,370/- only. Disallowance of depreciation on motor car - Held that:- The assessee fairly agreed that the issue can be decided against the assessee in view of non availability of supporting documentary evidence. Thus, the ground of appeal of the assessee is dismissed. Addition u/s 68 - Held that:- We find that the loan confirmation as well as the bank statement was not produced by the assessee before the lower authorities. Therefore, in the interest of justice and fair play we are inclined to restore this issue to the file of AO for fresh adjudication in accordance with the provisions of the law. DR did not raise any abjection if the matter is restored back to the AO. Hence we are inclined to restore this issue to the file of AO with the direction to adjudicate the same afresh in accordance with the provision of law. It is needless to mention that the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 Mr. Kalhan Vyas 1,77,290/- Director China and USA 2 Himanshu Vyas and Kusum H Vyas 3,44,947/- Director Kenya 4.1 On question by the AO about the justification of foreign travelling expenses, the assessee submitted as under: i. It was incurred in relation to pre-sales consulting and the consulting income which has been included in assessee s taxable income. ii. It was also incurred regarding innovation for new software and marketing of existing services or software products. 4.2 However, the AO disbelieved the explanation furnished by the assessee on the ground that no evidence substantiating the claim was furnished. Accordingly, the same was disallowed and added back to the total income of the assessee. 5. Aggrieved, assessee preferred an appeal to Ld. CIT(A). The assessee before the Ld. CIT(A) filed the copy of the ledger showing travel expenses with all the supporting documents. However, the Ld CIT(A) disregarded the contentions of the assessee and confirmed the order of AO by observing as un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidering the facts in totality, we are inclined to confirm the disallowance of total foreign travelling expenses to the tune of 25% i.e. ₹ 1,68,200/- only. Thus, this ground of appeal of the assessee is partly allowed . 9. The second issue raised by the assessee is that Ld CIT(A) erred in disallowing the Domestic Travelling Expenses of ₹ 4,69,112/-. 10. The assessee during the year has claimed Domestic Travelling Expenses of ₹ 6,25,483/- only. On question by the AO, the assessee has filed the Xerox copies of the travelling expenses in haphazard manner. However, the AO during the assessment proceedings observed that the domestic travelling expenses have been incurred by the assessee on account of air travelling outside Ahmadabad. The AO also observed that the clients of the assessee are based only in the City of Ahmadabad. Therefore, the AO was of the view that the Domestic Travelling Expenses has not been incurred exclusively in connection with the business of the assessee. 10.1 The AO also observed that the assessee also failed to furnish the details to justify that the Domestic Travelling Expenses were incurred by the employees of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted by the AO that the documentary evidence were furnished by the assessee in haphazard manner. Therefore, the disallowance was made to the tune of 75% of the total travelling expenses. 14.1 In the given facts and circumstances, we note that the lower authorities has admitted the genuineness of the expenses to the tune of 75% and the balance was disallowed on ad hoc basis. After considering the facts in totality, we are inclined to confirm the disallowance of total foreign travelling expenses to the tune of 25% i.e. ₹ 1,56,370/- only. Thus, this ground of appeal of the assessee is partly allowed . 15. The next issue raised by the assessee against the order of Ld CIT(A) for confirming the disallowance of depreciation on motor car for ₹ 75,000/-. 16. At the outset, the Ld Counsel for the assessee fairly agreed that the issue can be decided against the assessee in view of non availability of supporting documentary evidence. Thus, the ground of appeal of the assessee is dismissed . 17. The next issue raised by the assessee is that Ld CIT(A) erred in confirming the addition of ₹ 5,00,000/- u/s 68 of the Act. 18. The assessee during the year has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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