AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2016 (4) TMI 203
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....nses claimed in this regard at Rs. 64,60,413/- instead of allowing the full claim. 3. On the facts and in the circumstances of the case, the learned CIT(A) erred in sustaining the disallowance out of 'Carriage Inward' expenses at Rs. 6,999/- and out of 'Carriage Outward' expenses at Rs. 7,307/- instead of allowing the full claims. 4. On the facts and in the circumstances of the case, the learned CIT(A) erred in sustaining the disallowance of Rs. 1,303/- and Rs. 7,750/- out of "Ganesh Puja" expenses and "Bengali New Year Celebration" expenses respectively. 5. On the facts and in the circumstances of the case, the learned CIT(A) erred in sustaining the disallowance out of 'Sales Promotion' expenses at Rs. 70,904/-, being 10% of the total claim of Rs. 7,09,039/- in this regard. 6. On the facts and in the circumstances of the case, the learned CIT erred in sustaining the disallowance out of 'Canvassing charges' at Rs. 99,623/-, being 10% of the total claim of Rs. 9,96,235/- in this regard." 3. First ground raised by assessee is that Ld. CIT(A) erred in sustaining the disallowance of Book Distribution expenses to the extent of Rs. 9,69,062/- being 15....
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..... A/R. During the year, the appellant has incurred an expenditure of Rs. 64,60,413/- on account of "book distribution". The appellant could not produce the supporting bills and vouchers before the A.O at the time of scrutiny assessment. During the curse of appeal, the Ld. A/R has explained that the appellant's business of publishing and selling books depends on the distribution of sample/specimen books to various educational institutions and teacher. Keeping in view the volume of the business, I am of the opinion that the expenditure shown at Rs. 64,60,413/- on account of book distribution is very high and excessive. In my opinion, it would be reasonable and proper if the disallowance out of book distribution expenses is restricted to Rs. 9,69,062/- being 15% of book distribution expenses. Accordingly the AO is directed to restrict the disallowance on account of book distribution expenses to Rs. 9,69,062/- instead of Rs. 22,61,145/-. This ground of appeal is partly allowed." 6. Being aggrieved by this order of Ld. CIT(A) assessee preferred second appeal before us. 7. Shri Ravi Tulsiyan, Ld. Authorized Representative appearing on behalf of assessee and Shri Rajat Kr. Kuveel, L....
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.... of lower authorities we find that that the nature of the expenses has not been doubted but the supporting expenses vouchers have not been produced, so the disallowance was made on estimated basis. No comparison of such expenses claimed by the assessee in the preceding years or subsequent years relevant to the year under consideration has been furnished. Considering the fact regarding the importance of distribution of sample books and totality of the claim of assessee we further restrict the distribution of such expenses to the extent of 5%. Accordingly, we direct the AO to re-compute the disallowance of sample books distribution expenditure @ 5% of the total expense incurred by assessee. This ground of assessee's appeal is partly allowed. 10. Ground No. 2raised by the assessee in this appeal is that Ld. CIT(A) erred in sustaining disallowance of carriage inward expense of Rs. 6,999/- and carriage outward expenses at Rs. 7,307/-. 11. During the year, assessee has claimed carriage inward expenses for an amount of Rs. 69,990/- which was supported from the debit vouchers. Therefore, AO has disallowed 25% of carriage inward expenses and added to the income of assessee. 12. Aggri....
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....appeal is that Ld. CIT(A) erred in sustaining the disallowance of Rs. 1,303/- and Rs. 7,750/- out of "Shree Ganesh Puja and "Bengali New Year Celebration" expenses. 17. During the year assessee has claimed expenses for the purpose of "Ganesh Puja" for an amount of Rs. 5,210/-and "New Bengali Year" celebration for an amount of Rs. 31,000/- only. Mostly, these expenditures were incurred in cash and supported with debit vouchers only. Therefore, AO has disallowed 25% of such expenses and added total income of assessee. 18. Aggrieved, assessee preferred appeal before Ld. CIT(A) who has upheld the action of AO by observing as under:- "I have carefully considered the observation of the Assessing Officer in the assessment order and also the submission of the Ld. A/R. Considering the nature of the business, the disallowances of Rs. 1,303/- and Rs. 7,750- out of Ganesh Puja and Bengali New Year Celebration respectively are confirmed. This ground of appeal is dismissed." 19. Being aggrieved by this order of Ld. CIT(A) assessee preferred second appeal before us. 20. Before us Ld. AR submitted that "Ganesh Puja" is considered necessary for betterment of its business. Indians have emotiona....
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....ervation of the Assessing Officer in the assessment order and also the submission of the Ld. A/R. During the year, the appellant has incurred an expenditure of Rs. 7,09,039/- on account of Sales Promotion Expenses. During the course of appeal, the Ld. A/R has explained that the appellant debited expenses which were incurred by the sales boys during sales promotion campaigns in different places of West Bengal so that the books published by the appellant were enlisted in different schools. In the assessment order, the AO has observed that the vouchers in relation to Sales Promotion Expenses have been mostly maintained. Considering the facts of the case, the AO is directed to restrict the disallowance to Rs. 70,904/-, being 10% of Sales Promotion Expenses instead of Rs. 1,41,808/-. This ground of appeal is partly allowed." 25. Before us Ld. AR of assessee submitted that the assessee in order to popularize its business in all avenues of education conducts promotional campaigns through its sales executive to increase sales all over of this State. For this purpose sales executives travel in and outside Kolkata to distribute books in different areas as a part of this campaign. For thesam....