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TMI Blog2025 (1) TMI 1471X X X X Extracts X X X X X X X X Extracts X X X X ..... ents before the AO for verification - CIT(A) directed the learned AO to consider the submissions made by the appellant/assessee and give relief subject to verification of evidence. In the given facts, the order of learned CIT(A) deserves approval. Disallowance of Misc. Foreign Expenses - Genunity of expenses not doubted and expenses being incurred wholly and exclusively for purposes of business are not disputed by the revenue. So assessee deserves relief. Disallowance of Advertisement and sales promotion exp on being 1% of total expenditure on the head - The books of accounts were not rejected. In the case of assessee's own case, learned CIT(A) for A.Ys. 2011-12 & 2012-13 had decided the issue in favour of the assessee. So the contention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against the order dated 26.02.2024 of Learned Commissioner of Income Tax (Appeals) - National Faceless Appeal Centre, Delhi [hereinafter referred to as 'Ld. CIT(A)'] arising out of assessment order dated 31.12.2019 of the Assessment Unit, Income Tax Department (hereinafter referred as 'Ld. AO') under section 143(3) of the Income Tax Act, 1961 [hereinafter referred to as "the Act"] for the Assessment Years 2016- 17 & 2017-18. 2. The issues except ground no.3 in A.Y. 2016-17 being common and being related to the same assessee from different assessment years the respective appeals of the assessee have heard together and a common order is being passed hereunder. 3. We shall first take up the A.Y. 2016-17 for adjudication purposes. ITA No. 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 62. Learned CIT(A) also erred in directing the AO for making verification of the claim of assessee with respect to Rental income of Rs. 10,43,144/-. Learned CIT(A) also erred in deleting the addition of Rs. 1,19,33,625/- on account of disallowance of Misc. Expenses. Learned CIT(A) erred in deleting the addition of Rs. 1,06,42,710/- on account of disallowance of advertisement and sales promotion expenses. Learned CIT(A) erred in deleting the addition of Rs. 82,33,577/- on account of disallowance of expenses of Consumption debtors. Learned CIT(A) erred in directing the AO for making verification of the claim of assessee of Leave Encashment amounting to Rs. 77,71,211/-. Learned CIT(A) has erred in deleting the addition on account of Disallowan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmissions observed that the assessee had submitted the details with respect of Misc. Foreign Currency Expenses vide letters dated 16.12.2019 and 28.12.2019. Learned AO observed that the expenses could not be verified. It is a fact that the claim in the return was duly audited by the clarified Chartered Accountant so there were no reasons for learned AO for rejecting the claim. Genunity of expenses not doubted and expenses being incurred wholly and exclusively for purposes of business are not disputed by the revenue. So assessee deserves relief. As such learned CIT(A) rightly deleted the addition of Rs. 1,19,33,625/-. 12. Learned CIT(A) deleted the addition of Rs. 1,06,42,710/- on account of disallowance of advertisement and sales promotion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r ratio of judgment in the case of Exide Industries Ltd. vs. Union of India 292 ITR 470, the directions for verification of the claim of assessee are deserves to be upheld. 16. Learned CIT(A) deleted the addition on account of Disallowance of 50% of software expenses amounting to Rs. 16,84,803/-. Since learned AO had not given any specific reason and exact amount of the expenditure to treat such expenditure as capital in nature. Relying on judgments of learned CIT(A) and ITAT in appellant's own case, the view taken by learned CIT(A) is meritorious. 17. In view of above material facts and circumstances, the arguments of learned Authorized Representative of department of Revenue being devoid of merit are untenable. The grounds of appeals ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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