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TMI Blog2019 (11) TMI 1006X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld. Pr. CIT in the impugned order. Therefore, after hearing the CIT (DR) and after perusal of materials on record, and further, in view of the foregoing discussion, we decline to interfere with the aforesaid impugned appellate order dated 28.03.2017 of Ld. CIT(A). In view of the foregoing discussion, the appeal filed by assessee is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... lendra Kumar Jain, 76-B, DDA Flats, Jhilmil Colony, Vivek Vihar, Delhi-110095 Sir, Sub: Notice u/s 263 of the I.T. Act, 1961 in the case of Sh. Shelendra Kumar Jain (PAN: ADJPJ4984G), 76-B, DDA Flats, Jhilmil Colony, Vivek Vihar, Delhi-110095, A.Y. 2012-13 - Regarding 2. You have e-filed the return of income on 30.09.2012 declaring gross total income at ₹ 74,52,299/-. Subsequently, the case was selected through CASS basically on the reason "Large Sales Promotion Expenses". The assessment was completed at an Income of ₹ 1,32,83,620/- after making an addition of ₹ 58,40,310/- because of the involvement of expenses of personal and unverifiable nature. 3. Further during the course of examination of the assessment records by PCIT-19, some issues have cropped up which the A.O. has failed to verify and did not look deeply, The issues are as under:- [1) The mam point for selection, viz. huge sales promotion expenses has not been looked into deeply. Although a 5% disallowances has been made, but no meaningful verification has been made so as to enquire its genuineness and reason for huge increase in the present year. (ii) It appears from the past asstt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder:- The main point for selection, viz. huge sales promotion expenses has not been looked into deeply. Although a 5% disallowances has been made, but no meaningful verification has been made so as to enquire its genuineness and reason for huge increase in the present year. On the above issue the assessee has submitted that his business was in expansion mode and therefore more offices in new areas were established. He had to resort comparatively high expenses on sales promotion & marketing for expanding the business. To substantiate his claims, he had filed (i) Comparative Chart for Sales Promotion Expenses for last 4 years (ii) List of cities where expansion to establish the business in new areas (iii) Sub-head wise, month-wise and area-wise expenses on sale promotion and marketing. It is seen from the assessment records that the same submissions had also been filed during the assessment proceedings u/s 143(3). However the A.O. had disallowed 5% of ₹ 4.89 Crs. expenses owing to not filing of any corroborative documents or details in support of the expenses. Hence no adverse findings are made in this issue. It appears from the past assessment records that no books ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of Other Expenses booked in P & L accounts stating that in the P & L no similar headings are found so all are grouped and booked under one head i.e. Other Expenses. From perusal of the above details it is found that out of total expenses of ₹ 7.19 Crs. Major expenses have been booked in the name of Production and processing Expenses (₹ 3.39 Crs.) Office Maintenance (₹ 11.55 lac), Printing and stationary (₹ 40.71 lac), Other Administrative Expenses (₹ 83.42 lac). These issues need further examination as the name has not been done by the AO. vi. The assessee has shown rent paid of ₹ 58.66 Lacs in the Profit & Loss account but no rent agreement is on records. So, you are requested to file rent agreement and also state applicability of TDS under Chapter XVII of the I.T. Act, 1961. Here he has submitted that rent paid is in small amounts ranging from ₹ 2,000/- to ₹ 9,000/-p.m. hence no TDS deduction is required. However keeping in view the large amount involved under this head, independent inquiry is required by the A.O. which he had failed to do. Keeping in view the above, I have no option but to conclude the assessment order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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