TaxTMI 
TaxTMI 
2014 (1) TMI 35
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....80,000/-. The assessee preferred an appeal before the CIT(A) and CIT(A) vide its order dated 12/06/2003 confirmed the disallowance of Rs.1,80,000/- Aggrieved by the order of the CIT(A), the assessee preferred an appeal before the ITAT. ITAT set side the order of the CIT(A) and remitted back the issue to the file of AO so as to enable the assessee to produce the proof of services rendered by her and to produce the payee for examination of the AO so as to verify the correctness of the claim. Before the AO in the second round, it was submitted that R.B.Consultant is a proprietary-concern run by Ms.R.B.Tanna since long and she was associated with M/s.Shakun Pharma Pvt.Ltd. as an Advisor for giving explanation and information about the medicines to medical representatives of the company. It was further submitted that Ms.R.B.Tanna of R.B.Consultants was also consultants to various other companies and she was appointed by the assessee to give training to the marketing staff of the company so as to enable them to explain about the products of the assessee who in turn could explain the same to the Doctors. She was also assisting the assessee to prepare the detailing and visual Ads, etc. of ....
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....,000/- (disallowance of Rs.1,65,000/- for A.Y. 2002-03) being payment made to M/s.R.B.Consultants. Yours appellant submits that the services availed off are not disputed and the Hon'ble CIT(A) is no justified in confirming disallowance of entire amount paid to her. Hence the addition made is not justified and same be deleted now. 3.1. Before us, the ld.AR for the assessee Mr.Sunil H.Talati submitted the brief services rendered by M/s.R.B.Consultants which was placed at page No.33 of the paper-book is reproduced below:- "BRIEF OF THE SERVICES RENDERED BY M/S. R.B. CONSULTANTS M/s. R.B. Consultants, a proprietary concern of Smt. Rekhaben B. Tanna, is working as our consultants to provide their services to our field staff as well as for our product promotion purpose. They assist and direct us to prepare our promotional materials viz. Visual Aids, Literatures, Brochures and detailing stories, which are very important and key roles in marketing our products. The consultant visits our office as well as our designers of visual aids at distant places for this purpose as and when required. One of their important services is to give training to our newly ap....
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....rd. It is submitted by the assessee that Ms.R.B.Tanna assisted the assessee for imparting training to the marketing staff of the company so as to enable them to explain the products who in turn could explain the same to the Doctors. It has further been submitted that the assessee has been providing consultancy services to various other companies for which the necessary Certificates were enclosed from page Nos.2 to 7 of the paper-book. From the certificates placed on record, it is revealed that Ms.R.B.Tanna has received remuneration ranging from Rs.1,000/- to Rs.5,000/- for the entire year from a few companies. She has also stated to have received a remuneration of Rs.36,000/- from Mercury Marketing & Consulting Services. The qualification of Ms.R.B.Tanna is stated to be Post Graduation in Commerce. There is nothing on record to prove that she has obtained any other qualification with respect to medicines and pharmacy which could help in marketing the products manufactured by the assessee. CIT(A) while upholding the addition has held that the nature of the services rendered by Ms.R.B.Tanna includes the work of technical nature and for which she does not appear to be technically qual....
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.... has failed to furnish supporting evidences to establish that all expenditures incurred were wholly and exclusively for the business purpose. The AO has disallowed only 1% which is reasonable. In the given matrix, I refute to intervene in the action taken by the AO. Thus, this ground of appeal fails." 8. Before us, ld.AR for assessee submitted that the disallowance has been made on adhoc basis without pointing a single instance of expense to be of non-business in nature. The ld.DR, on the other hand, supported the order of CIT(A). We have heard the rival submissions and perused the material on record. We find that AO while perusing the voucher on sample basis noted that it was without bills or invoices has not disallowed the entire expenses but only 1% of expenses. CIT(A) while upholding the order of AO has held that assessee has filed to furnish supporting evidences to establish that all expenditure incurred were wholly and exclusively for business purposes. Considering the totality of facts, we find no reason to interfere with the order of CIT(A). Thus, this ground is dismissed. 9. For Asst.Year 2002-03 (by way of ground No.4), the assessee had claimed a sum of Rs.16,98,535....