https://www.taxtmi.com/caselaws?id=753712 ITAT Mumbai allowed the assessee's appeal on two issues. First, the disallowance of business promotion expenses for food provided to 250 people at a get-together between foreign suppliers and local customers was deleted. The tribunal held that given the assessee's substantial business volume and accepted books of accounts, the AO erred in disallowing the entire expense without adverse findings, especially when TDS was deducted and related hotel expenses were allowed. Second, the addition under Section 41(1) for cessation of liability towards professional fees outstanding for over three years was deleted. The tribunal ruled that merely reflecting liability in financial statements indicates acknowledgment and intention to settle, and addition cannot be made solely because limitation period expired. en-us Tue, 16 Jan 2024 00:00:00 +0530 Sat, 08 Jun 2024 09:05:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753712 ITAT Mumbai allowed the assessee's appeal on two issues. First, the disallowance of business promotion expenses for food provided to 250 people at a get-together between foreign suppliers and local customers was deleted. The tribunal held that given the assessee's substantial business volume and accepted books of accounts, the AO erred in disallowing the entire expense without adverse findings, especially when TDS was deducted and related hotel expenses were allowed. Second, the addition under Section 41(1) for cessation of liability towards professional fees outstanding for over three years was deleted. The tribunal ruled that merely reflecting liability in financial statements indicates acknowledgment and intention to settle, and addition cannot be made solely because limitation period expired. Case-Laws Income Tax Tue, 16 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753712