2013 (4) TMI 793

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....s read as under:  "Grounds of appeal for Assessment Year-2007-08: 1. Ld. CIT(A) erred in upholding disallowance of Rs. 144562/- being 10% of expenses incurred under the head telephone and postage without properly appreciating the facts of the case that such expenses included cost of postage, courier charges, cost of telephones installed at office and residential premises of the staff and mobile telephones and all the expenses are incurred for the business of the firm. 2. Ld. CIT(A) erred in confirming disallowance of Rs. 311300/- out of foreign travelling expenses incurred by the appellant of Rs. 6226005/- being 5% of the total expenses incurred expenses being incurred in the day-to-day business of the appellant, hence no such....

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....sment year 2006-07 the total traveling expenses incurred by the assessee were at Rs. 97,20,250/-. From the details it was noticed that those expenses include aggregate of Rs. 26,71,011/-, which were incurred by Smt. Shushma Agarwal, partner of the assessee firm who travelled to foreign countries viz. U.K. Switzerland and Cambodia . On the ground that these may involve some personal expenditure the AO disallowed 50% thereof and thus he made disallowance of Rs. 13,35,560/-. The disallowance was challenged in an appeal filed before Ld. CIT(A). One of the grounds raised before Ld. CIT(A) was that these were subjected to FBT, therefore, disallowance could not be made. However, Ld. CIT(A) has rejected such submissions and has upheld the additi....