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TMI Blog2020 (1) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... f "manufacturing of engineering goods". While making the assessment for the assessment year 2015-16, the Assessing Officer disallowed Rs. 3,01,754/- under the head travelling expenses, Rs. 10,25,000/- claimed to have been incurred towards donation under the head other expenses U/s.37, Rs. 61,200/- penalty paid on sales tax U/s.37. Thus the Assessing Officer made a total disallowance U/s.37 at Rs. 13,87,954/-. Further, the Assessing Officer observed that the assessee claimed weighted deduction U/s.35(2AB). When he sought particulars, the assessee filed Form 3CM issued by the Competent Authority viz., the DSIR dated 07.07.2015, wherein the research and development facilities were approved w.e.f. 01.04.2013 to 31.03.2015 for the purpose of Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ority has not responded to the assessee's request. Therefore, relying on the decision of the Hon'ble jurisdictional High Court in the case of CIT vs. TVS Electronics Ltd., in TCA Nos.1457 & 1458 of 2008, dated 19.03.2019, the ld.AR submitted that the assessee's claim be allowed. 3.1 Alternatively, the ld.AR also submitted that even otherwise, the assessee's claim is entitled to be examined within the scope of Section 37 of the Act. With regard to the disallowances of travel expenditure, donation and sales tax penalty, the ld.AR submitted that the ld.CIT(A) grossly erred in upholding these disallowances. The travel expenditure and the expenditure on donation were incurred purely for the purposes of business in accordance with the business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction (1) of Section 139A of the Act for furnishing the return of income, for each succeeding year. In the assessee's case, such due date is 30.09.2015. Ongoing through the copy of the assessee's letter dated 22.12.2017, filed before this Tribunal, the ld.DR submitted that the assessee has furnished such particulars to DSIR, very belatedly i.e., after a long gap of about 2 years 3 months. Probably for that reason, the assessee's claim might not have been entertained / approved by the prescribed authority. In this regard, the ld.DR inviting our attention to the Hon'ble Jurisdictional High Court's observation in the case of CIT vs. M/s. TVS Electronics Ltd., supra, that "the assessee cannot be punished for the bureaucratic delay in giving suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k for due examination. On the assessee's plea towards disallowance of travel expenses, the ld.DR submitted that these amounts were incurred towards Director's father and his family and therefore, the Assessing Officer treated them as personal. Since, the assessee has not produced any material that they were incurred towards business purposes either before the ld.CIT(A) nor before the Hon'ble Tribunal, the ld.DR supported the disallowance. With regard to the disallowance of donation also, the ld.DR took similar plea. On the issue of disallowance of sales tax penalty at Rs. 61,200/-, the ld.DR submitted that the penalty paid is not allowable U/s.37 and hence he supported the orders of the lower authorities. 5. We heard the rival submissions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble jurisdictional High Court's decision, supra. Since the assessee has not complied with the provisions as required and has not laid the required material before the authorities concerned, the disallowance made is justified. The corresponding grounds of the assessee fail. 5.1 With regard to the assessee's alternate claim that the impugned expenditure may be considered and allowed U/s.37, we find merit in the assessee's claim. However, since the lower authorities have not examined this issue, we deem it fit to remit this issue back to the Assessing Officer for a fresh examination. The assessee shall lay all materials in support of its contention before the Assessing Officer and comply with the requirements of the Assessing Officer in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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