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TMI Blog2019 (11) TMI 578X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of expenses for business purposes. In the present facts and circumstances of the case, AO as well as CIT(A) were not right in making addition or restricting addition more particularly when the assessee had produced all the bills and vouchers regarding each expenses. Therefore, we are of the considered view that the orders passed by the Revenue authorities on this issue are not sustainable. Hence, the Ground No. 1 raised by the assessee is allowed. Addition for trade mark registration expenses - HELD THAT:- As submitted at Bar by assessee that so far registration of trademark has not been done and these expenses were exclusively incurred by the assessee on account of consultancy charges to professionals towards fee for registering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of ₹ 8,78,928/-. 2. Under the facts and circumstances of the case the ld. CIT(A) has erred in confirming the addition of ₹ 36,750/- for trade mark registration expenses. 3. Under the facts and circumstances of the case the ld. CIT(A) has erred in not allowing carried forward of long term capital loss of debt mutual fund of ₹ 10,31,572/- suffered by the assessee. 2.1 At the outset of the hearing, the ld.AR of the assessee submitted that he wants to withdraw the Ground No. 3 raised in the grounds of appeal for which the ld. DR has no objection. Hence, the ground no. 3 raised by the assessee is dismissed treating the same as withdrawn by the ld.AR of the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not mention specific instances where expenses debited is not fully vouched. It is also admitted that some expenditure which is for local travelling in foreign cities and fooding expenses were incurred in cash. Considering the defects pointed out by the AO and the submissions made by the appellant, it appears that disallowance made by the AO is on higher side. In view of the overall facts and circumstances of the case, the disallowances are restricted to 5% of such expenses. The appellant gets a relief of ₹ 4,39,465/-. 3.4 During the course of hearing, the ld.AR of the assessee has prayed for deletion of addition restricted @ 5% by the ld. CIT(A) to the extent of ₹ 4,39,465/- for which the ld.AR of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owance 5% on ad-hoc basis without specifying any defect. Hence the disallowance sustained by the learned CIT(A) deserves to be deleted. 3.5 On the other hand, the ld. DR relied on the orders passed by the Revenue authorities. 3.6 We have heard the rival contentions and perused the materials available on record. It is undisputed fact that the assessee (Individual) is engaged in the business of manufacturing, trading export of gold and silver jewellery. The assessee in his profit and loss account claimed a sum of ₹ 87,89,282/- on account of exhibition expenses and foreign travelling expenses. The assessee is an exporter and his wholesales business is export sales to the foreign customers. It is also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d a sum of ₹ 49,000/- on account of trade mark registration expenses which is an expenditure of capital nature. The AO further noted that the expenses incurred for registration expenses are onetime expenses and are of capital in nature and the effect of the same is for a long period. The AO thus disallowed the trade market registration expenses of ₹ 49,000/-. However, the AO allowed depreciation @ 25% of such expenses which comes to ₹ 12,250. Thus the AO made an addition of ₹ 36,750/- (₹ 49,000 minus ₹ 12,250) to the total income of the assessee. 4.3 In first appeal, the ld. CIT(A) has confirmed the action of the AO by observing as under:- 3..3.3 Determ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rding incurring of expenditure is available on paper book page no. 105. The learned CIT(A) has sustained this addition on the ground that the assessee has not produced any evidence in support of expenditure claimed, whereas the assessee has enclosed the copy of invoice of ₹ 49,000/- in the paper book which is also available before your honor. Therefore the addition deserves to be deleted. 4.5 On the other hand, the ld. DR relied on the orders of the Revenue authorities. 4.6 We have heard the rival contentions and perused the materials available on record. It is noted that the assessee has claimed to have incurred the expenses of ₹ 36,750/- towards fee paid for registration of tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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