2016 (5) TMI 1536

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....ommon order for the sake of convenience. 2. The first ground in this appeal is with regard to jurisdiction u/s.153A of the Act, so as to frame the assessment u/s.143(3) r.w.s.153A of the Act. 3. The facts of the issue are that the assessee is a company engaged in the business of manufacturing and sales of distillery products. It wholly supplies its products to Tamilnadu State Marketing Corporation (TASMAC). The assessee company filed its return of income for the asst. years 2010-11 to 2013-14 as under :  Sl.No. A.Y. Income returned 1 2010-11 21,70,94,520/- 2 2011-12 31,33,82,675/- 3 2012-13 30,02,25,570/- 4 2013-14 24,97,00,560/- The search was conducted in the office premises of M/s. SNJ Distillers Pvt. Ltd. at No.99....

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.... Hence, we do not find any infirmity in framing the assessment u/s.153A of the Act and the same is confirmed. This ground of appeal of the assessee is dismissed. 5. The next ground in all these appeals is with regard to disallowance of sales promotion expenses on the reason that it is an agreed addition. The AO disallowed the sales promotion expenses in these assessment years on the basis of consent given by the assessee to make that addition, as the assessee has failed to produce the evidence in support of the claim of expenditure as follows : Sl.No. A.Y. Income returned 1 2010-11  35,17,423 2 2011-12 1,10,58,298 3 2012-13  91,06,397 4 2013-14 1,33,35,005 The CIT(Appeals) confirmed the same, though the assessee p....

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....ses are available and the payments are made by cheque as well as cash and sought one more chance to produce the same before the AO. In our opinion, the plea of the assessee is justified. In our opinion, the assessee is having the right of appeal even it is agreed to addition before the AO. Due to paucity of time, the assessee could not produce the material. Now, the evidence is available regarding this expenditure before the assessee and it requires to be examined by the AO. 9. It is to be noted that the revenue authorities have not doubted the incurring of expenditure for sales promotion. However, they doubted the quantum of expenditure incurred. The business cannot be carried on without incurring sales promotion expenditure. The ld. AR p....