TaxTMI 
TaxTMI 
2009 (2) TMI 819
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....al, the assessee has raised the following grounds of appeal : "1.1 That under the facts and circumstances, learned CIT(A) grossly erred in law as well as on merits in disallowing the claim of travelling expenses of Rs. 11,10,515 by holding the same as in the nature of capital expenses against correctly claimed as revenue expenditure. 1.2 That without prejudice, after holding the travelling expenses as having been incurred for business purposes, the learned CIT(A) was required to allow the same as revenue expenditure. 2. That disallowance of l/10th out of car related expenses on the ground of personal use is absolutely unjustified. No disallowance should have been made. 3. That both the lower authorities grossly erred in law as well as o....
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....nding of the assessing, authority on the ground that the assessee had incurred the expenses for exploring new business opportunities and therefore, took the character of capital expenditure and could not be allowed under s. 37. It was a submission that the assessee was already in the business in the form of liaison work and consequently was entitled to the total expenditure of the revenue field. 5. The learned Departmental Representative vehemently supported the orders of the AO and the learned CIT(A). 6. We have considered the rival submissions. At the outset, what is noticed is that the assessee has visited the various foreign countries and as a consequence of this travel as per the statement of the assessee itself in the notes filed, t....
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....n the expenses. In reply, the learned Departmental Representative vehemently supported the orders of the assessing authority and the CIT(A). 8. We have considered the submissions. In regard to the car expenses, the element of personal using car related expenses cannot be ruled out. It is further noticed that the learned CIT(A) has been quite reasonable in restricting the disallowance to 1/10th of the expenditure as against 1/8th disallowed by the assessing authority. This being so, as no error in the order of the learned CIT(A) has been specifically pointed out and the assessee has not been able to specifically show that all the expenses in regard to the car expenses were business expenses, the finding of the learned CIT(A) on this issue s....
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....at where the assessee has requested for adjusting the seized cash against the advance tax due, it should be done and no interest under s. 234B can be charged. In reply, the learned Departmental Representative submitted that as per the provision of s. 132B, the seized cash could not be adjusted against advance tax. It was a submission that as on the date of search, no liability was existing in the case of the assessee for the adjustment of the seized cash and it was only on completion of the assessment that the liability on account of the tax came into existence. He relied upon the decision of Hon'ble Madhya Pradesh High Court in the case of Ramjilal Jagannath & Ors. vs. Asstt. CIT (1999) 156 CTR (MP) 49: (2000) 241 ITR 758(MP) wherein i....