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TMI Blog2020 (7) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... IT (A), whether the presence of officials was required or not and how much that official has over stayed after completion of the official work is only based on presumption and surmise which cannot be upheld when the employees and directors were going official purpose. Being a PSU and under aegis of GOI, there cannot be an element of personal use of the company and therefore, such ad-hoc disallowance cannot be made and same is directed to be deleted. - Decided against revenue. Disallowance u/s. 14A of the Act read with rule 8D - CIT - A deleted the addition - HELD THAT:- Both the parties agreed that there is no exempt income earned by the assessee. The Ld. Counsel submitted that whence there is no exempt income, then there is no questio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government of India Public Sector Enterprises under Ministry of Commerce. It is involved in trading and import and export of various bulk commodities, such as metals/minerals, nonferrous metals, fertilizers, agro products, general trade and hydrocarbons, etc. It is also into import of gold and silver under OGL and also into manufacturing of gold and silver items. During the course of assessment proceedings, the AO noted that the assessee debited sum of ₹ 1,59,60,835/- on account of travelling expenses. The assessee was required to furnish the bifurcation and details of these expenses incurred by the directors, which as per the AO, the assessee has failed to furnish the same and accordingly, he held that in order to prevent the leakag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d chart, the assessee has given the details of employees, like names and designations of employees, country visited, period of visit, TA, DA paid and further details of expenditure of air fare, miscellaneous expenses, etc. After furnishing of such voluminous details, such kind of ad-hoc disallowance cannot be made. Further, it was stated that out of ₹ 1,59,60,835/-, sum of ₹ 51,75,511/- was domestic travelling expenses and balance for foreign travelling. The reasoning given by the Ld. CIT (A) for confirming the addition is purely vague and cannot be sustained. 7. On the other hand, the Ld. DR, submitted that, first of all, as per the AO, no proper details were given; and secondly, the Ld. CIT (A) has specifically stated that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s was required or not and how much that official has over stayed after completion of the official work is only based on presumption and surmise which cannot be upheld when the employees and directors were going official purpose. Being a PSU and under aegis of GOI, there cannot be an element of personal use of the company and therefore, such ad-hoc disallowance cannot be made and same is directed to be deleted. 9. In the Revenue s appeal, the only issue involved is disallowance u/s. 14A r.w.r 8D. The facts in brief are that the assessee company has shown an investment of ₹ 4606.33 million. The Ld. AO noted that the assessee has not done any calculation of disallowance u/s 14A. In response to show cause notice, the assessee submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X
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