Tribunal overturns Revenue's disallowances of travel and trademark expenses, finding actions unjustified.

The tribunal allowed the appellant's appeal, overturning the disallowances of both foreign traveling expenses and trade mark registration expenses. The Revenue's actions were deemed unjustified as all expenses were adequately supported by vouchers and bills, with the tribunal finding no basis or reasoning for the disallowances.

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Issues involved:
1. Disallowance of foreign traveling expenses
2. Disallowance of trade mark registration expenses

Issue 1: Disallowance of foreign traveling expenses

The appellant contested the addition of Rs. 4,39,464 for foreign traveling expenses out of total expenses of Rs. 8,78,928. The AO disallowed 10% of the expenses, which the CIT(A) reduced to 5%. The appellant argued that all expenses were supported by vouchers and bills, with only a small portion incurred in cash. The tribunal noted that the appellant, engaged in gold and silver jewelry export, participated in foreign exhibitions, incurring the expenses in question. The AO's disallowance was solely based on handmade vouchers and cash payments, without disputing the business nature of the expenses. The tribunal held that the Revenue's actions were unjustified as all expenses were adequately supported. Consequently, the tribunal allowed the appellant's appeal on this ground.

Issue 2: Disallowance of trade mark registration expenses

The AO disallowed Rs. 36,750 out of Rs. 49,000 trade mark registration expenses, treating it as capital expenditure. The CIT(A) upheld this decision, stating lack of evidence from the appellant. However, the appellant argued that the expenses were for consultancy charges, a revenue expenditure. The tribunal found evidence of consultancy charges in the documents submitted by the appellant. The Revenue's disallowance was based on the appellant's alleged failure to provide evidence, despite the document's presence in the record. The tribunal held that the disallowance lacked a basis and reasoning, leading to the deletion of the addition. Consequently, the tribunal allowed the appellant's appeal on this ground.

In conclusion, the tribunal partly allowed the appellant's appeal, overturning the disallowances of both foreign traveling expenses and trade mark registration expenses.

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