AI Drafter 
TaxTMI 
TaxTMI 
2016 (8) TMI 598
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....iled a petition requesting for condonation of delay stating therein that the assessee was ill at the relevant point of time and to this effect a copy of the medical certificate was annexed to the petition. The assessee also filed an affidavit affirming the reasons mentioned in the condonation petition. 3. After hearing the parties, we are of the view that since the assessee was prevented by sufficient cause in filing the appeal before us within the due date, the delay of 5 days in filing the appeal `is condoned and the appeal is admitted for adjudication. 4. The assessee herein is an individual and is a Marketing Executive of. V.V.R Housing Private Limited purely working on commission basis, but do not have any separate business/incom....
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....hasers from their residence to the site for showing the area and as such vehicle maintenance and travel expenses were incurred. The assessee further stated that all the car hire charges, vehicle maintenance and travelling expenses were incurred for the purpose of business activity and therefore the disallowance made by the Assessing Officer is not justified. 7. After considering the submissions of the assessee, the CIT(A) restricted the disallowance to 30% as against 50% made by the AO by observing as under: 5.3 Perused the submissions of the appellant and the observations of the Assessing Officer in the assessment order. As could be seen from the facts of the case, the appellant shown to have earned commission of Rs. 45,62,801/- from....
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....#39;Advertisement' of Rs. 3,03,900/-, during the course of assessment proceedings the Assessing Officer observed that the assessee incurred expenditure of Rs. 6,07,800/- towards advertisement which is on the higher side since the company M/s.V.V.R.Housing Pvt. Ltd. which is a leading company in real estate business has launched massive advertisement campaign and there is no necessity on the part of the assessee to incur such huge expenditure towards advertisement. Thus, the Assessing Officer disallowed 50% of advertisement expenditure of Rs. 6,07,800/- i.e. Rs. 3,03,900/- and added the same to the income returned. 9. Before the CIT(A), the assessee objected for such addition stating that the advertisement undertaken by the company M/....
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....mind, the Assessing Officer disallowed 50% of such expenses. The appellant's argument against the said disallowance was that the company is responsible for advertisement at macro level, whereas his responsibility lies at micro level, with pamphlets printed and distributed on door to door basis. Though there is strength in the argument of the appellant, it is not enough to controvert the total disallowance, due to the fact that no information could be furnished by assessee, relatable to the said expenses and the amounts were mostly incurred through cash payments, which do involve the inflation of expenses. Considering the fact that major responsibility of advertisement lies with the principal, as compared to the agent and also keeping th....
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....ed additional revenue compared to other years and as well as the net profit declared by the assessee and the same was accepted by the department in the preceding and following years are between 15% to 17%. Moreover, the assessee had to spend certain expenditure to earn this income. The Assessing Officer cannot wear shoes of the assessee and determine, how much he has to spend. The Assessee had earned the income and we are not aware of the difficulties in earning the income in this line of business. The prospective buyers need to be convinced and taken to the respective sites to convince them. Assessing Officer has not brought anything on record to controvert that these expenses have not met by the buyers or sellers. In absence of such evide....