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TMI Blog2018 (1) TMI 1741X X X X Extracts X X X X X X X X Extracts X X X X ..... low should not have disallowed part of the expenditure in view of the decision of Givo Ltd.[ 2010 (7) TMI 151 - DELHI HIGH COURT] Disallowance out of other expenses, we find that the expenses incurred by the assessee are of professional nature - AO without pointing out any expenditure of personal nature has disallowed a part of expenditure which is not in accordance with law as held by various courts including case of Tripat Kaur [ 2012 (9) TMI 1012 - ITAT DELHI] wherein held travelling expenses and salary expenses, addition made on estimate basis cannot be justified - disallowance is also, not justified merely on the ground that similar disallowance was made in the previous year. Accordingly, we hold that the addition on account of travell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gly upheld the same, which is not in accordance with law, as has been held by Hon'ble Delhi High court in the case of CIT vs. Givo Ltd., ITA No. 941/2010. The ld. AR further relied on the decisions in the case of Tripat Kaur vs. ACIT, ITA No. 3244/Del./2012(Del.) and ACIT vs. Raj Kumar, ITA No. 4165/Del./2009(Del.) for the proposition that no adhoc disallowance could be made by the authorities below without pointing out any cogent basis as to why the expenditure was to be disallowed. Explaining the facts of the case, the ld. AR submitted that the assessee is a script writer and had visited foreign countries and had incurred expenses to the tune of Rs. 2,83,460/- whereas the AO disallowed an expenditure to the tune of 1/3rd of such expen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rstanding about the topic with regard to which she wants developing/writing script otherwise the outcome topic which she wants, won't be good so in order to have a better script. She required to actualize her experience and knowledge about the said topic say for example if she developing a script which is about the life of a London couple for that she must not only have knowledge about their local culture, behavior etc. but also understand and feel the local culture, behavior of the same. Otherwise, the script would be worst which can only be developed if she have a visit there and grab knowledge, understand about the said culture, behavior etc. and actualize her experience in her script. Hence, foreign traveling directly relates with h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... details of the expenditure have been found to have been produced before the Assessing Authority. Ld. CIT(A) not found any defect in the claim of expenses., could not now make a change in the stand of the Assessing Authority to say that apparently the travel to Paris, London, Amsterdam and Hong Kong was not for business purposes. Further, as the revenue has not been able to point out as to which expenses of foreign travel as claimed by the assessee is not for the business purpose and as the assessee has produced the evidences in relation to the foreign travel before the Assessing Authority and the same has also been accepted by the Ld. CIT(A), the addition on this account more so on ad-hoc basis is unjustified and the same is deleted. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dition on account of travelling expenses was totally based on surmises and conjectures. Assessing Officer has not brought on record any cogent basis as to why this expenditure was to be disallowed. It is not the case that expenditure was considered to be bogus or any shortcoming in the vouchers in this regard was observed by the Revenue. Under the circumstances, we hold that estimated addition without any basis cannot be sustained. In this regard, the case law relied upon by the Ld. Counsel of the assessee in the case of the ITO vs. Lake Palace Hotels and Motels (P) Ltd. 13 TTJ (JP) 216 is germane. In this case, it was held that the travelling expenses and salary expenses, addition made on estimate basis cannot be justified. Moreover, disal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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