2012 (10) TMI 1055

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....JM: The department has filed this appeal for assessment year 2002-03 against order dated 17.1.2011 of ld CIT(A)-38, Mumbai on the following ground: "On the facts and in the circumstances of the case, ld CIT(A) was not justified in deleting the addition of Rs. 20,52,097 being 20% of distribution expenses without satisfying himself that the entire amount of distribution expenses of Rs. 1,02,60....

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....rs regularly and pass on some incentives to keep market share of the assessee. It was also submitted that the payments were made by cheques and in cash which have been separately shown. Before the AO, assessee submitted the list of recipient of incentives with names, region, product sold, quantity on which the incentives paid alongwith incentives handling charges @ 5% on incentives. A statement sh....

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.... nature have not been incurred by the assessee and also has not brought any material on record to show that there was any violation of section 40A(3) of the Act. Therefore, he held that adhoc disallowance is not called for. Hence, this appeal by the revenue. 3. At the time of hearing, ld D.R. supported the order of AO. He submitted that since the vouchers are not fully verifiable and the expens....

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.... making the assessment pursuant to search taken place and that too in a case where original return had already been accepted u/s.143(1) of the Act before the search had taken place, adhoc disallowance made by AO is not justified. Similar question was also considered in the block assessment by Hon'ble Calcutta High Court in the case of Commissioner of Income-tax v. Ashim Krishna Mondal, 270 ITR 160....