TaxTMI 
TaxTMI 
2014 (2) TMI 746
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....rred in law by partly confirming the disallowance of Sales Promotion Expenses to the tune of Rs.251259/- as against total disallowance of Rs.298120/-, made by the learned AO in his Assessment Order passed u/s 143(3) of Income Tax Act 1961 by applying the same basis for such disallowance as by the learned AO i.e. disallowing expenditure purely on arbitrary and ad hoc basis. Therefore, the said addition is liable to be deleted. 3. Learned A.R. of the assessee reiterated the same arguments which were raised before the learned CIT (A). As against this, learned D.R. of the Revenue supported the orders of the authorities below. 4. We have considered the rival submissions, perused the material available on record and gone through the orders ....
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....the business of the assessee. He has also given a finding that in any case, buying of Air Ticket for doctors by a medical company is unethical and against the public policy. Before us also, no evidence has been brought on record to show that the amount claimed to have been incurred through the Managing Director is supported by any evidence and what is the nature of expenditure. This also could not be shown to us that there was any business purpose for visits to Sri Lanka, Maldives and Munich. The assessee has filed a paper book of 137 pages and has enclosed the copy of ledger account of sales promotion expenses but there is no evidence brought on record before us regarding the nature of expenses and evidence thereof. Considering all these f....
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....lable on page 47 of the paper book. He pointed out that the Assessing Officer has disallowed the expenses incurred in respect of Mrs. Kirti Sabharwal's visit to Singapore. He further submitted that Mrs. Kirti Sabharwal is also a Director and merely for this reason that she happens to be the wife of MD, the expenses incurred cannot be disallowed. 7. Learned D.R. of the Revenue supported the orders of the authorities below. 8. We have considered the rival submissions, perused the material available on record and gone through the orders of the authorities below and we are of the considered opinion that merely because Mrs. Kirti Sabharwal happens to be wife of the MD of the assessee company, the expenditure incurred on behalf of her canno....
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....ilarly he has made ad hoc disallowance of 20% under the head legal and professional charges. He submitted that such ad hoc disallowance is not justified. 11. Learned D.R. of the Revenue supported the orders of the authorities below. 12. We have considered the rival submissions, perused the material available on record and gone through the orders of the authorities below. we find that regarding disallowance of 10% out of vehicle running and maintenance, it is stated by learned CIT(A) in para 7.2 of his order that since the assessee has not maintained logbook, such disallowance of 10% is reasonable. We do not find any force in this reasoning given by learned CIT(A) because the assessee is a private limited company and therefore, even if....