TaxTMI 
TaxTMI 
2019 (12) TMI 210
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....stating therein the reasons for not filing the appeal on time. We have perused the reasons stated in the affidavit filed by the Managing Director of the assessee-company. We find that there is sufficient cause for the delayed filing of the appeal and no latches can be attributed to the assessee. Hence, we condone the delay of 33 days in filing this appeal and proceed to dispose of the same on merits. 3. Three issues are raised for our consideration, namely (i) whether the CIT(A) has erred in confirming the disallowance of a sum of Rs. 3 lakh being subvention expenses; (ii) whether the CIT(A) has erred in sustaining the addition of Rs. 10,16,666; and (iii) whether the CIT(A) has erred in confirming the addition of Rs. 3,21,000 being deemed ....
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....nt the amounts given to the customers by way of discount as per the instruction of the suppliers. The Assessing Officer made adhoc disallowance of Rs. 5 lakh. The A.O. held that these expenses are supported by assessee's self-made vouchers only and the details are not verifiable with supporting evidences. On appeal, the CIT(A) restricted the disallowance to Rs. 3 lakh and granted a relief of Rs. 2 lakh against the addition. 7.1 Aggrieved, the assessee is in appeal before us raising ground No. 2 in the grounds of appeal. 7.2 We have heard the rival submissions and perused the material on record. It is the claim of the assessee that subvention expenses represent amounts given to customers by way of discount etc. as per the instruction of th....
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....he assessee preferred an appeal to the first appellate authority. The CIT(A) confirmed the view taken by the Assessing Officer. The relevant finding of the CIT(A) reads as follow:- "6.2 I have considered the submission of the appellant. A new unit has apparently been set up by the appellant for starting its four wheeler dealership. Dealership agreement is dated 08.06.2007 which pertains to A.Y.2008-09. The appellant has also relied upon the decision of DHL Express (I) (P) Ltd. v. ACIT (2009) 124 TTJ 108 (Mum.). The facts of the two cases relied upon by the appellant are clearly distinguishable from the appellant's case. In the case of DHL, the Hon'ble High Court concluded that setting up date and commencement date of the business were d....
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....two and three wheeler for Honda Motors and Piaggio Vehicle Pvt. Ltd, during the relevant previous year. The assessee was a dealer of Ape three wheeler vehicles when the said supplier started four wheeler division and the assessee was appointed as its Kannur dealer in the financial year 2006-2007. For the four wheeler division, the assessee identified a new premise as per the requirement of the manufacturer and incurred various expenses for its set up. A copy of the ledger extract is placed on record from pages 3 to 7 of the paper book filed by the assessee. 8.3 The learned Departmental Representative supported the orders of the Income Tax Authorities. 8.4 We have heard the rival submissions and perused the material on record. The assessee....
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....o be related to the business of the appellant. As per its own submissions, the funds were given only to make payment on behalf of its sister concern or to cover its default in respect of bank loan repayment. This was being done because the directors of both company were same. Therefore, there was no commercial or business transaction between the appellant, and its sister concern for which these funds were advanced. Therefore, the facts of the appellant are clearly distinguishable from the case relied upon by the appellant. I hold that funds were not advanced by the appellant for business purpose but only to bail out its sister concern in time of need." 9.2 The learned AR reiterated the submissions made before the Income Tax Authorities. Th....