2011 (7) TMI 574

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ion of this Court:  "(i)  Whether on the facts and in the circumstances of the case, the learned ITAT was right in law in upholding the order of the learned CIT(A) in deleting the addition of Rs. 5,72,091 made by the Assessing Officer on account of site expenses even though the assessee had failed to discharge its obligation to establish that the expenses were incurred wholly and exclusively for the purpose of the business as provided in section 37(1) of the Income Tax Act, 1961?  (ii)  Whether on the facts and in the circumstances of the case, the learned ITAT was right in law in upholding the order of the learned CIT(A) in deleting the addition of Rs. 3,60,887 made by the Assessing Officer on account of disallowance ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rred appeal to the Tribunal which was dismissed vide the order under appeal. 6. We have heard learned counsel for the appellant and perused the record. 7. This appeal relates to the following additions made by the assessing officer:- (i) Rs. 5,72,091 on account of site expenses; (ii) Rs. 3,60,887 on account of telephone expenses; and (iii) Rs. 2,63,040 as maintenance expenses. 8. Taking up first issue relating to disallowances on account of site expenses amounting to Rs. 5,72,091, it would be expedient to refer to the findings of CIT(A) who while deleting the aforesaid addition observed as under: "I have carefully considered the point and counter points of the issue involved by the Ld. A/R and the A.O. I find that the A.O. has admitted ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....error of law or perversity could be shown by the learned counsel for the appellant in the aforesaid finding which may warrant interference by this Court. 10. Adverting to the other disallowances of Rs. 3,60,887 out of telephone expenses and Rs. 2,63,040 from vehicle running & maintenance expenses, the CIT(A) returned the following finding: "I have carefully considered the submissions of the Ld. A.R. and perused the order of assessment. It is found that the A.O. has made these disallowances on a very fallacious argument that he has made the disallowance u/s 37(1) of the Income Tax Act, not because there was element of personal use in these assets by the Directors or others, but because the assessee had not been able to establish that the e....