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TMI Blog2025 (1) TMI 1278X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, hence the expenditure claimed is allowed as a deduction u/s 37(1) of the Act being in the nature of sales promotion expenses. Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the instant appeal within the statutory time limit. We, therefore, condone the delay and admit the appeal for adjudication on merits. 2. The assessee is in appeal before this Tribunal raising the following grounds of appeal: "1. The Ld. C1T(A) erred in law and in the facts of the case in upholding the finding of the AO that satisfaction is recorded u/s 14A before making disallowance. 2. The Ld. CIT(A) erred in law and in the facts of the case in restricting the disallowance made by the AO at Rs. 86,224/- u/s 14A of the Act. 3. The Ld. CIT(A) erred in law and in the facts of the case in confirming the disallowance made by the AO of Rs. 4,81,477/- being sales promotion expenses." 2.1. Ground nos. 1 & 2 are regarding the disallowanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that these expenses were incurred for organising the meeting with its customers, suppliers and bankers and therefore, for business purpose, as claimed by the appellant. In absence of the same, it can not be said that these expenses were incurred by the appellant wholly and exclusively for the business of the appellant. Therefore, I find no reason to interfere with the order of the AO in respect of this addition. The addition made by the AO is upheld. This ground may be treated as dismissed." 2.3. Our attention was drawn to paras 3.1 and 3.2 of the appeal order by the Ld. AR whereby the addition was confirmed as the assessee did not file details of the unit acquired nor the details of supporting evidence were filed. The ld. AR drew our att ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith assets and liabilities for a total lumpsum consideration of Rs. 1,43,62,000/-. The details of payment of the same are mentioned at pages 2 & 3 of the agreement. Further, a perusal of the Schedule of Assets of the assessee and the schedule shown in the balance sheet of the unit acquired as on 14.08.2009 shows that the figures of plant & machinery, furniture, fixtures, computer and printer etc. shown have been incorporated for working of depreciation u/s 32 of the Act which have been added to the opening balance. Therefore, it is established that the assessee had acquired a new unit and the expenditure was incurred for which bills related to sales promotion expenditure were filed before the Ld. CIT(A) and the same was allowable as the bus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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