9911796707
TMI Blog2022 (2) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. Copies of all the orders of the proceeding years as well as subsequent year have already been placed on record and after going through these orders as well as facts of the present case, we found that no disallowance was called for on telephone expenses and the assessee is entitled to said deduction U/s 37(1) of the Act, accordingly, we direct to delete the same. Disallowance on account of entertainment expenses - HELD THAT:- No disallowances had been made by the A.O. in the preceding years as well as in the subsequent year. With regard to club subscription/expenses, we observed that the club subscriptions and expenses were incurred for the business purposes as much as it facilitated interaction with business associations etc. The club expenses were incurred with a view to promote to soliciting the customers in export of garments business - A.O. noted that the expenses with regard to entertainment are related to purchase of foods items and some of the bills are in the names of the partners for Delhi Gold club - assessee's business is export of garments out of India and many of the foreign buyers came India in connection with export business activities and the assessee f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ignoring the submissions of the appellant. 3. On the facts and under the circumstances of the case, the Commissioner of income Tax (Appeals) is wrong in confirming the addition of ₹ 1,80,653/- u/s. 40(a)(ia) out of the total additions of ₹ 3,54,703/- by ignoring the submissions of the appellant. 4. The disallowances are against the law and facts of the case. 2. The brief facts of the case are that the assessee is a firm having income from business/profession, house property and other sources. The assessee files its return of income on 29/11/2014 declaring an income of ₹ 16,27,65,110/-. The return of income was processed U/s 143(1) of the Income Tax Act, 1961 (in short, the Act). Finally the assessment was completed U/s 143(3) of the Act on 16/12/2016 determining total income of ₹ 16,44,11,800/- by making various additions. 3. Being aggrieved by the order of the A.O., the assessee carried the matter before the ld. CIT(A), who after considering the submissions of both the parties and the material placed on record, given part relief to the assessee. Against which, the assessee has preferred the present appeal before the ITAT on the grounds me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd club expenses are personal in nature and has no connection with the business of the assessee. It is an undisputed fact that the assessee is engaged in the business of export of garments out of India and the foreign buyers, who visited India alongwith their India based consultants from time to time to oversee production process, to verify quality of finished goods and also for designing for fabric related issues and also other various government auditing/licensing persons in connection with export business activities. It is also an undisputed fact that all the partners of the firm are working partners and they have to look after the foreign buyers and soliciting them for entertainment in hotels and clubs to run the business activities of the assessee firm smoothly. 8. We observed from perusal of the record that with regard to entertainment expenses, no disallowances had been made by the A.O. in the preceding years as well as in the subsequent year. Copy of the assessments order for the A.Y. 2012-13, 2013-14 and 2015-16 alongwith profit and loss account are placed on record at page Nos. 27 to 39 of the paper book. With regard to club subscription/expenses, we observed that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Payment made to Export Inspection Agency (Page No. 106 of paper book) 10,409/- We further noticed that the payments of ₹ 1,01,448/- were made on account of Membership and subscription charges as under: Date Particulars Amount 25/04/2013 Federation of Indian Export Organization 10534 30/04/2013 Membership fee Citi Bank Credit card 3615 30/04/2013 Membership Fee of AMX Bank Credit card 14007 08/05/2013 Garments Exporters Association 750 03/06/2013 Apparel Export Promotion Council 1686 07/06/2013 Mayapuri Small Industries Welfare Association 750 13/06/2013 Indo French Chamber of Commerce 16854 27/06/2013 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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