9911796707
TMI Blog2023 (2) TMI 1162X X X X Extracts X X X X X X X X Extracts X X X X ..... and the countries visited. We find that the employees visited countries namely, Nairobi, South Africa, Singapore, China, Tashkent, Denmark, Dhaka, France, Bangkok, Hong Kong, Dubai, Italy, USA, Canada, Sri Lanka. We find that the entire trips have been made by the employees and the Directors. There were no trips pertaining to any personal staff or relatives of the directors of the employees. All the tours have been made for the purposes of expanding the business for imports and exports. In the absence of any personal element or nonbusiness purpose brought by the AO any tours undertaken, we hereby affirm the action of the ld. CIT(A) in deleting the addition. Car Expenses disallowed - Addition made on the grounds of personal use owing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 24.01.2018. 2. The assessee has raised the following grounds of appeal: 1 . That the order of the ld Commissioner of Income Tax (Appeals) is against law and facts . 2. That in the facts and circumstances of the case of the appellant company the order of the ld Commissioner of Income Tax (Appeals) in con firming addition of Rs. 2,73,01,709/- in respect of manufacturing/ trading of school bags profit is highly arbitrary exorbitant, illegal, void and uncalled for . 3. That in the facts and circumstances of the case of the appellant company the order of the learned Commissioner of Income Tax (Appeals) in con firming addition of Rs. 64,11,300/- in respect of Trading results of fabrics is altogether arbitrary, illegal, voi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been earned . 4. Whether on the facts and in the circumstances of the case, the CIT(A) has erred in ignoring the fact that the CBDT Circular 5/2014 dated 11 .02 .2014 has not been even considered in Hon'ble Punjab Haryana High Court s decision in the case of M/s Lakhani Marketing Inc . in ITA No.270/2008 on which reliance has been placed upon by CIT(A). 5. Whether the CIT(A) has erred in deleting the disallowance of Rs .57,39,524/- out of total foreign travel expenses of Rs . 1,58,52,751/- completely overlooking the fact that the assessee had failed to establish the commercial expediency for the said expenses and had also failed to furnish any documentary evidence in support of Foreign Exchange Expenses, Credit Card and O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .1,89,07,638/- on account of undisclosed business profits from trading and manufacturing of School Bags by admitting the evidence in the form of the order of Special Commercial Court (ADJ), Gurgaon under Rule 46A of the I.T . Rules without even caring to call for a report from the Assessing officer. 10 . Whether the CIT(A) has erred in deciding the issue of undisclosed business profits merely by relying upon the order of Special Commercial Court (ADJ) Gurugram, and by comple tely overlooking the findings of exhaus tive enquiries carried out by the AO during the assessment proceedings as duly recorded in the assessment order . 11 . Whether the CIT(A) has erred in deciding the issue merely by relying upon the order of Special Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14 . Whether the CIT(A) has erred in giving relief of Rs . 1,70,63,923/- to the assessee by not appreciating the fact that none of the transacting parties/concerns involved came forward to certify or authenticate the assessee s claim about the transactions be tween them be fore the AO. 15 . Whether the CIT(A) has erred in deciding the GP rate at 7%, without offering any basis and justification for the same . ITA No. 1979/Del/2018 (Revenue Appeal) Disallowance u/s 14A: 4. During the year, the assessee has not received any dividend, hence we hold that in the absence of any dividend received and claim of exempt income, no disallowance u/s 14A is called for. Foreign Travel Expenses: 5. The AO disallowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nue on this ground is dismissed. Car Expenses: 10. The AO disallowed the car expenses on the grounds of personal use owing to non submission of any log books produced for verification of the purpose of the journeys performed by the company vehicles and the personal use of the cars by the directors cannot be ruled out. The ld. CIT(A) deleted the addition on the grounds that the details of the personally owned vehicle by the directors were obtained and examined. Since, the directors have also own the vehicles in their personal capacity, the allegation of the AO that the company vehicles were used for personal purpose in the absence of any tangible evidence cannot be sustained. The decision of the ld. CIT(A) is hereby affirmed. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
