TaxTMI 
TaxTMI 
2014 (2) TMI 231
X X X X Extracts X X X X
X X X X Extracts X X X X
....iness Promotion Expenses. 2. The Ld CIT (A) has erred in abruptly allowing only part relief to the aforesaid expenses without appreciating the fact that the same were incurred for the purpose of appellant's business only. More so, major expenses were allowed by the Hon'ble ITAT in earlier years on the basis of the same set of facts. 3. The ld CIT (A) ought to have appreciated that the Diwali expenses incurred by the Appellant company were recognized custom in the trade and they can be regarded as necessary expenses for the purposes of the Appellant's business activities. 4. The ld CIT (A) ought to have appreciated that the Appellant company incurred expenses on presentation of Gift Articles not bearing the logo of the Appellant com....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... has granted the relief of Rs.3.00 lacs and balance addition has been confirmed. The assessee is aggrieved, hence, has filed Ground No.1 to 5. 4. It was submitted by Ld. AR that in respect of assessment year 2007-08 similar issue was considered by the Tribunal and following the earlier order passed by the Tribunal in respect of 2006-07 the disallowance was restricted to 50% of the disallowance sustained by Ld. CIT(A). Reference in this regard was made to the following observations of the Tribunal in the order dated 11/4/2012 in ITA No.2474/Mum/2011 in assessee's own case for A.Y 2007-08. Copy of such order was placed on our record and was also given to Ld. DR. "6. Ground no.2 is regarding the gift, chandla, di....
X X X X Extracts X X X X
X X X X Extracts X X X X
....supported by the evidences, In our considered opinion, the ends of justice will meet adequately in these peculiar circumstances if the total disallowance sustained by the learned CIT(A)towards these expenses at Rs.3.74 lakhs is reduced by 50% to Rs. 1.8 1akhs. We hold accordingly". In the absence of any distinguishing features brought on record by the parties, we respectfully following the order of the Tribunal supra and keeping in view the rule of consistency, hold that it will meet the ends of justice if the total disallowance sustained by the Id. C1T(A) towards these expenses at Rs,7,57,390/- is reduced by 50% to Rs.3,78,695/-. Accordingly, the assesse gets a relief of Rs.3,78,695/-. We hold and order accordingly. The ground by the asses....
X X X X Extracts X X X X
X X X X Extracts X X X X
....9, 2002-03 and 2003-04 in ITA Nos. 750 to 752/Mum/2010 vide order dated 7/3/2012 has restricted the disallowance to the tune of 25% of the sundry expenses. The relevant portion read as under: "3. Ground No.1 is regarding disallowance of miscellaneous expenses incurred by the assessee on behalf of the principle. 4. We have heard the Ld. AR of the assessee as well as the Ld. DR and considered the relevant material. At the outset, we note that an identical issue has been considered and decided by the Tribunal in assessee's own case for the AY 1998-99 and 2002-02 and 2003-04 in ITA No. 750 to 752/Mum/201 0 Vide order dated 7.3.2012 and both of us are parties to the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... business expenditure - Held, yes - Whet her such payment is not an illegal payment or a payment opposed to public policy as dock workers are not Government employees - Held, yes - Whether, however, where assessee failed to establish that actually payment had been made to extent indicted in vouchers, 25 per cent of expenditure incurred by way of payment of speed money was to be disallowed on estimate basis - held, yes." From the above it is clear that if it can be finally found that money was paid to the government employees only then this would be covered by the Explanation to section 37(1) otherwise the expenditure would be justified. In that case also in the absence of details it was assumed that speed money was paid to the extent of ....