TaxTMI 
TaxTMI 
2015 (6) TMI 933
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....as grossly erred in treating Ground No. 1 of the appellant's appeal challenging the validity of the assessment order impugned before him as being general in nature and therefore, not required to be adjudicated upon. He ought to have appreciated, inter alia, that the assessment order impugned before him had been passed without application of mind and therefore, deserved to be cancelled. 2. In law and in the facts and circumstances of the appellant's case, the learned CIT(A) has grossly erred in upholding disallowance of deduction for travelling expenses of Rs. 9,90,879. He ought to have appreciated, inter alia, that vide its written submissions before him which had even been reproduced in the impugned Appellate Order, the appellant ....
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.... ordered for the cancellation of those proceedings, thereby saving the appellant as well as the Department from having to undergo avoidable litigation. 5. The appellant craves leave to add, amend and/or alter the ground or grounds of appeal either before or at the time of hearing of the appeal. 2. Briefly stated facts are that the case of the assessee was picked up for scrutiny assessment and the assessment u/s.143(3) of the Income Tax Act,1961 (hereinafter referred to as "the Act") was framed vide order dated 20/12/2010, thereby the Assessing Officer (AO in short) made disallowance of travelling expenses of Rs. 9,90,879/- on the basis that the assessee could not substantiate with evidence the business nexus for claiming the travelling ex....
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....s below were justified in making the disallowance. 4. We have heard the rival submissions, perused the material available on record and gone through the orders of the authorities below. We find that the ld.CIT(A) has decided the issue in para-3.3 of his order by observing as under:- "3.3. I have considered the facts of the case; assessment order and appellant's submission. Appellant claimed travelling expenses for which it was not able to give details of business purpose and accordingly assessing officer disallowed the same. Appellant argued that it was business expense and spent for the purpose of business however no specific details of purpose of these travelling expenses and their business nexus were submitted. Considering the fact tha....
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....appellant. As far as the contention of the Ld. AO regarding the absence of any commercial expediency is concerned, the appellant would like to state that the reasons forming basis of such rejection are vague and without any evidences surfaced during the course of assessment proceedings. The travelling expenses are allowable under section 37 of the act as they are not expressly allowed under section 30 to 36 of the act, neither they are in the nature of capital transactions nor they are personal in nature further they are related to business carried on by the assessee and are incurred wholly and exclusively for the purpose of business. Hence all the criteria laid down in under section 37 of the act are met and accordingly they may be allowe....
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....h provision of the Income-tax Act, 1961 ('the Act') the travelling expenses have been disallowed. In light of the above facts, judicial precedents the appellant prays your good office to direct the Ld.AO to delete the addition made by disallowing transportation expenses of Rs. 9,90,879/-. " 4.2. We also find that the ld.CIT(A) has not adverted to the submissions of the assessee. The assessee had specifically submitted that the expenditure have been incurred on travelling of the executives for the business purpose of the assessee-company. There is no dispute with regard to proposition that deduction of expenditure is allowable if same is incurred for the business purpose. The assessee is required to demonstrate the business purpose....