2020 (2) TMI 520

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....addition made on estimated variation in consumption of raw material and contribution of Rs. 3,00,000/- made to one Lady Ampthill Hospital. 2. The relevant finding of the order passed by the Tribunal is quoted below for ready reference:- "3. We have heard both the counsels. We find that orders of the lower authorities are reasonable on this issue. The assessee cannot the expected to claim allowance of foreign travel expenses by merely claiming to be the same for business purposes without substantiating the same with necessary bills and vouchers. As such, the orders of a lower authorities on this issue are affirmed and the assessee's appeal is dismissed. ..... ..... 5. The next common issue raised pertains to....

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....t the explanation given by the assessee was silent about the shortages/wastages/losses. He also averred that there is a specific column in the audit report under Section 44AB where the assessee is required to give several information on the quantity and percentage of production, wastage, yield and shortage, etc. This information was not given by the assessee in the said report. The information, as required by the lower authorities from the assessee did not elicit appropriate information to arrive at the comparative variation in the consumption of the raw materials with reference to the production. ..... ..... 8. Upon considering the entire spectrum of the case, we find that expenses have to be justified not only with regar....

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.... benefit out of the contribution. Since the assessee has not brought anything to support the assertion that his contribution to the hospital actually provided any benefit/succour to the employees of the assessee and office. Thereafter he made comparison with production figures and estimated excess consumption. In our opinion, this basis of segregation of electricity expenses is not cogent enough to warrant an addition on comparative analysis. As such, we reverse the orders of the learned CIT(A) in this case and decide the issue in favour of the assessee." 3. These two Appeals were admitted by a co-ordinate Bench of this Court on 10.8.2010 by separate orders and the questions of law framed are quoted below for ready reference:- ....

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....hority. 5. The learned Senior Standing Counsel Mr.T.Ravikumar appearing for the Revenue contended before us that in the absence of any evidence produced by the Assessee during the course of assessment proceedings and even the appeal proceedings, the Authorities below were justified in answering the questions against the Assessee, particularly on the issue of contribution made to the tune of Rs. 3,00,000/- to Lady Ampthill Hospital. 6. The learned counsel appearing for the Assessee sought to urge that the contribution was made for the benefit of the employees of the Assessee and therefore, it ought to have been allowed as a business expenditure under section 37 of the Act. 7. The learned Senior Standing Counsel appearing for the Rev....