2014 (6) TMI 887

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....rred by 12 days of limitation period. The assessee has filed an application for condonation of delay explaining the reasons for the above said delay of 12 days in preferring the present appeal. In view of the explanation for delay given by the assessee and also considering the shortness of the delay period, the delay in preferring the present appeal is hereby condoned and the appeal is heard on merits. The assessee has taken the following grounds of appeal :                "1. The appellant respectfully submit that the delay of 12 days in filing of this appeal may please be condoned and the appeal may be admitted.         &....

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.... the assessee-firm was in the business of specialised designer jewellery catering to the needs of high net worth individuals visiting the showroom. Shri Viren Bhagat, one of the partners of the assessee-firm has been stated to be one of the world's renowned jewellery designer and the assessee-firm participated in various jewellery exhibitions held in foreign countries to increase the export sales. It was further explained that the assessee recorded a turnover of Rs. 12.65 crores, Rs. 13.81 crores and Rs. 30.13 crores in the financial years relevant to the assessment years 2007-08, 2008-09 and the current assessment year 2009-10 respectively. For the year under consideration the gross profit and the net profit margins were at 25 per cent....

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....owance up the extent of 10 per cent. of sundry expenses and 20 per cent. of travelling expenses. 5. We have considered the rival submissions of the learned representatives of both parties and have also gone through the records. It may be noticed from the order of the learned Commissioner of Income-tax (Appeals) that though he observed that the claim of the various expenses by the assessee was reasonable considering the nature and volume of business of the assessee, but, he confirmed 20 per cent. disallowance in relation to the travelling expenses and 10 percent in relation to the sundry expenses observing that element of personal use could not be ruled out. In our view the disallowance of 20 per cent. on ad hoc basis out of the claim ....