TaxTMI 
TaxTMI 
2009 (4) TMI 1032
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....r the sake of convenience. ITA No.2403/Del/2008 2. This is an appeal against the order of the CIT under section 263 of the Act. The original assessment in this case was made on 23.3.2006 under section 143(3) on the total income at Nil declaring loss of Rs. 3,81,04,132/-. In the profit and loss account, the assessee had claimed the deduction of expenditure on account of advertisement and publicity, the details of which were furnished vide letter dated March 10, 2006. The said expenditure on advertisement and publicity included the two amounts of provision for expenses - one of Rs. 69,34,853/- and other for Rs. 12,64,839/- aggregating to Rs. 81,99,000/-. The claim of the advertisement was accepted by the Assessing Officer in the origina....
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.... 8,000 Lakshmi Distributors Ban. 63,000 Annamalai Agencies, TN 243,000 Anjul Automobiles, Ghaziabad 75,250 Caravan Calcutta - IAC 63,000 Benarasilal, Kishanlal & Co. 45,000 DS Oil Trading & Co. 45,000 Ganganagar Motors Limited 63,000 New Delhi Tyre House - Del 93,250 Singh Automobiles, UP (P) 45,000 Rajdeep Associates, AP (P) 97,750 Sri Sai Agencies AP - IAC 63,000 Gupta Impax, Jharkhand (P) 66,250 Raj Lubricants Belgaum 45,000 Rohit Enterprises, UP (P) 63,000 Smith Enterprises, Auto (P) 45,000 PAE Limited MH (C) Raigad 10,000 Total B 1,291,500 ....
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....l is against the disallowance of Rs. 16,05,837/- being the expenditure incurred on foreign travelling out of the total expenditure of Rs. 19,95,603/-. The Assessing Officer asked to give the proof of business purpose for the said foreign travel, the person who visited, the countries visited and the purpose of travel. Assessee filed the details in six cases amounting to Rs. 3,89,766/- which was allowed by the Assessing Officer and the balance was disallowed. The assessee submitted that foreign expenses were reimbursed on actual basis and there is no practice to retain the sanction given by the superior authority which was not accepted to be justifiable reason to allow the claim of the assessee even by the CIT (Appeals). 6. The learned cou....
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....aid out wholly and exclusively for the purposes of the business. He accordingly deleted a sum of Rs. 3,99,120/- being 20% of the foreign travelling expenses of Rs. 19,95,603/-. 7. The disallowance was upheld by the CIT (Appeals) to Rs. 16,05,837/- as against Rs. 3,99,120/- disallowed by the Assessing Officer without apparently giving any notice for enhancement. Learned DR supported the order of the Assessing Officer and submitted that in view of the Madras High Court decision (supra) referred to by the Assessing Officer, the expenditure is rightly disallowed. He also supported the order of the CIT (Appeals) for enhancing the addition. 8. We have heard the parties and considered the rival contentions. It is true that some of the e.mail....