2021 (3) TMI 154

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.... of the Income Tax Act, 1961 ["Act" in short] as well as confirmation of disallowance of sales promotion expenses. 2. Brief facts of the case are that the assessee is an individual and carrying of manufacturing & selling Pharmaceuticals items. She filed the return of income for the assessment year 2010-11 on 07.10.2010 declaring total income of Rs. 28,14,174/- The return was processed under section 143(1) of the Act and since the case was selected for scrutiny, notice under section 143(2) of the Act was issued and served on the assessee. After considering the details furnished by the assessee, the assessment under section 143(3) of the Act was completed by making various additions. 3. With regard to the addition under section 68 of th....

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....the orders of authorities below. 5. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. In this case, since the assessee had stopped business operations, she was not in a position to produce the confirmation from the trade creditors to the extent of Rs. 39,65,206/- and thus, the Assessing Officer treated the same as unexplained cash credit and brought to tax under section 68 of the Act. Under section 68 of the Act, any sum credited in the books of the assessee in any financial year shall be treated as income of the assessee during such financial year if the assessee offers no explanation about the nature and source of such credit or explanation offered by the assessee ....

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....ue in accordance with law after affording an opportunity of being heard to the assessee. 6. The next ground raised in the appeal of the assessee relates to disallowance of sales promotion expenses to the extent of Rs. 22,64,048/-. The assessee has claimed to have incurred sales promotion and sales promotion material totalling to Rs. 69,25,297/- towards purchase of complimentary items like Ball pens, telephones, wall calendars, Dr. Note Pads, etc. During the course of assessment proceedings, the AR of the assessee has submitted bills for Rs. 46,61,249/- and the AR was not able to furnish the bills for sales promotion expenses to the extent of Rs. 22,64,048/-. Accordingly, the Assessing Officer disallowed the same and brought to tax. 7.....