2019 (3) TMI 313

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....see has raised the following two issues:- (i) Adhoc disallowance of Rs. 2,06,254/- being 10% of sale promotion expenses and; (ii) Disallowance of Rs. 7,75,861/- being exhibition expenses incurred on the ground that these did not pertain to impugned Assessment Year. 2. The facts in brief are that the assessee-company is engaged in the business of manufacturing of automobile parts. Learned Assessing Officer during the course of assessment proceedings with regard to the expenses claimed under the head 'Sales Promotion', noted that assessee had claimed expenditure on account of purchase of following diamond and gold jewellery:- Rs.6,066/- Ring Rs.22,170/- Gold chain Rs.3,51,167/- Gold chain/Diamond Pandal ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....uld have been made. 6. On the other hand, learned DR strongly relied upon the order of the authorities below and submitted that the issue is that assessee could not substantiate the incurring of such expenditure for the purpose of business. Hence, the disallowance made by the Assessing Officer is very reasonable which should not be tinkered with. 7. After hearing both the parties and on perusal of the impugned order and material referred to before us, we find that though assessee has given the list of the item distributed to various customers, however, nowhere it is borne out from the records as to whether distribution of gold and diamond ring and chains were part of the sales promotion activities. Neither any pamphlet of any scheme o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....parties and on perusal of the relevant findings and the material placed on record, we find that assessee had made a payment of sum of Rs. 5,75,860/- for participation in exhibition to M/s. Messee Franfurt Trade Fairs India (P) Ltd. for a stall in the international trade fair for the automobile industry. The payment made by the assessee is not in dispute which is evident from the letter written by M/s. Messee Franfurt Trade Fairs (P) Ltd., the copy of which is appearing at page 2 of the paper book and also the copy of invoice and receipt which are appearing at pages 73 and 74 of the paper book. When the payment of participation for exhibition purpose has been made in this year then ostensibly such a payment is revenue in nature incurred for ....