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TMI Blog2016 (5) TMI 1536X X X X Extracts X X X X X X X X Extracts X X X X ..... nsent given by the assessee to make that addition, as the assessee has failed to produce the evidence in support of the claim of expenditure - HELD THAT:- Revenue authorities have not doubted the incurring of expenditure for sales promotion. However, they doubted the quantum of expenditure incurred. The business cannot be carried on without incurring sales promotion expenditure. The ld. AR pleaded, before us, that most of these payments were passed through banking channels. In such circumstances, the disallowance of entire sales promotion expenditure is not proper. If the sale promotion expenditure are not supported by proper bills or vouchers or receipts and payments have been made only by cash, then there are chances of inflating of such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is directed against the order of the Commissioner of Income-tax(Appeals) dated 7.1.2016 for the assessment years 2010-11, 2011-12, 2012-13 and 2013-14. Since common issues are involved in these appeals, they are clubbed together, heard together and disposed off by this common order for the sake of convenience. 2. The first ground in this appeal is with regard to jurisdiction u/s.153A of the Act, so as to frame the assessment u/s.143(3) r.w.s.153A of the Act. 3. The facts of the issue are that the assessee is a company engaged in the business of manufacturing and sales of distillery products. It wholly supplies its products to Tamilnadu State Marketing Corporation (TASMAC). The assessee company filed its return of income for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of hearing, the ld. AR has not put any serious objection in framing assessment u/s.153A of the Act. More so, in the present case, the assessment was framed consequent to search in the case of the assessee and duly recording panchanama on the basis of incriminating material. Hence, we do not find any infirmity in framing the assessment u/s.153A of the Act and the same is confirmed. This ground of appeal of the assessee is dismissed. 5. The next ground in all these appeals is with regard to disallowance of sales promotion expenses on the reason that it is an agreed addition. The AO disallowed the sales promotion expenses in these assessment years on the basis of consent given by the assessee to make that addition, as the assessee has faile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, as held by the judgment in the case of Mariam Aysha v. Commissioner of Agricultural Income-tax (104 ITR 381), the consent cannot be a reason to sustain the addition. Before us, the ld. AR, submitted that all the evidences in support of business promotion expenses are available and the payments are made by cheque as well as cash and sought one more chance to produce the same before the AO. In our opinion, the plea of the assessee is justified. In our opinion, the assessee is having the right of appeal even it is agreed to addition before the AO. Due to paucity of time, the assessee could not produce the material. Now, the evidence is available regarding this expenditure before the assessee and it requires to be examined by the AO. 9. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oses. 10. The last ground in ITA No.302/Mds/2016 is with regard to levy of interest u/s.234A and 234B of the Act. 11. The interest under section 234A is chargeable from the date of expiry of the notice period given under section 153A to the date of completing the assessment under section 143(3) r.w.s. 153A of the Act, as held by the Tribunal in the case of ACIT v. VN. Devadoss [93 DTR 73 Chennai (Trib.). The interest under section 234B is to be levied only on the additional tax levied on the enhanced income determined under section 143(3) r.w.s. 153A of the Act. Therefore, the period of charging of interest should be from the date of determination of income under section 143(1) or 143(3) to the determination of enhanced income under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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