2011 (10) TMI 457

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....ting Chief Justice (ORAL)   1. Admit.   2. The following substantial question of law which arises for consideration:   "Whether the Income Tax Appellate Tribunal was correct in law and on facts in deleting the addition/disallowance made by the AO in respect of business promotion expenses amounting to Rs.27,19,769?"   3. The issue, thus, relates to the business promo....

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....made the addition on account of business promotion expenses as the assessee was not able to substantiate the same. On being enquired by the AO as to the genuineness of the huge amount which is expended on the so-called business promotion, the assessee stated that the expenses relate to the gift items for presentation. No details or explanation were provided as to what was the nature of gifts and h....

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....der of the CIT (A). Though the assessee has not come up in further appeal, it is only the Revenue, who has filed the appeal challenging the order of the Tribunal. The reason given by the Tribunal is summarized in Para 3 of the impugned order, which is as follows:   "We have considered the rival contentions and found from the record that in view of the assessee‟s business of leasing, ....

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....hearing the counsel for the parties, we are of the opinion that the Tribunal has not addressed the issue in a proper perspective. Only reason which has influenced the Tribunal is the high turnover of Rs.16.13 Crores achieved by the assessee, who was also having interest income of Rs.5.35 Crores, that, according to us, cannot be the ground to allow whatever expenditure is claimed by the assessee as....