2023 (1) TMI 769

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....13-14 has raised the following grounds of appeal: "1. The learned CIT(A) erred in law and on facts in confirming the ad-hoc addition of Rs.1,88,786/-, being 50% of the addition made by the learned AO, amounting to Rs.3,77,562/- out of "local conveyance and "conveyance transport", alleging the non-business use of the above expenses. 2. The learned CIT(A) erred in law and on facts in not appreciating that at the max, alleged non-business element included in the disallowed travelling expenses will be in the nature of benefit to employees and such benefit will be a deductible expense for the appellant anyway." 1.1 The Assessee for A.Y. 2014-15 has raised the following grounds of appeal: "1. The learned CIT(A) erred in law and on facts ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... by third party invoices. The preponderance of probability indicates that non business use of above expenses cannot be ruled out. In view of the above facts and circumstances, 10% out of difference of the previous year of local conveyance and conveyance expense Rs. Rs.3,77,572/-(10% of the Rs.3,77,572/-) is disallowed u/s37(1) and added to the total income." 3. The ld.CIT(A) upheld the addition made by the Assessing Officer(AO). "7.3.3 The submission of the appellant has been considered. It is true that the AO has not pointed out any specific vouchers which he doubted, however, it is also true that non business use of above expenses cannot be ruled out." 4. The ld.Authorised Representative(ld.AR) of the assessee submitted that the ent....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... travelling inland and foreign travelling for the sales promotion. But, the assessee has claimed sales promotion expenses under the separate head sales promotion to the tune of Rs.92,78,000/- and export promotion expenses to tune of Rs.1,26,000/-. Thus the quantum of promotional expenses is huge. The AR could not produce and asked supporting to the full as asked for the domestic conveyance. In the lack of the supporting and probability of non business purpose involved in it, the disallowance of 5% of travelling expenses is made. 2. Sales Promotion: Sales promotion expenses of Rs.92,78,000/- is booked. As stated above the quantum for the sales promotion expenses is huge. The supporting for the same are foreign tours bills and lunch exp....