TaxTMI 
TaxTMI 
2025 (8) TMI 1036
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....d Commissioner of Income tax (Appeals) has erred in law and on fact in upholding addition made by Assessing Officer that business promotion expenses amounting to Rs. 36,10,758/- were not incurred wholly and exclusively for the purpose of business and profession. 2. That any other reliefs deemed fit in the facts and circumstances of the case may be granted. The appellant craves leave to add, to alter, to amend, or to delete the above ground of appeal at or to prior to hearing of the appeal as may be required to enable the Learned Income Tax Appellate Tribunal to dispose off this appeal according to the law." 2. Brief facts of the case are that assessee is an individual and Chartered Accountant by profession. The assessee....
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....sessing officer recorded different bifurcation of total expenses on page-3 of his order. The assessing officer further recorded that out of total sale promotion expenses of Rs. 36,10,758/-, the assessee has shown Rs. 28,57,368/- for purchase of gold coins. The assessee was asked to substantiate such expenses for purchasing of gold coins. In response to such show cause notice, the assessee stated that gold coins are purchased for giving gifts at regular intervals for assignment for arranging loans through references. It was also contended that he may or may not require to pay professional fees but to give gifts to get supports form them. The assessing officer was of the view that it is the tactics of the assessee to reduce the tax liability.....
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....total expenses, the assessee debited to Rs. 28,57,368/- for purchase of gold coin and Rs. 7,53,390/- as payment to Café Coffee Day, Metro shoes, Club Houses, Credit Card bills, Hotel bills etc. The assessee has not able to produce detail of expenses and merely furnished bills of purchase of gold, which cannot be considered sufficient proof that it was used for business purposes only. The onus was on the assessee to prove that expenses claimed by him were incurred and exclusively for the purpose of business within the scope of section 37 of Income Tax Act. Further aggrieved, the assessee has filed present appeal before Tribunal. 5. We have heard the submissions of both the parties and perused the record carefully. The learned Autho....
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....t gifts were made to business associates in India and is customary and generally acceptable in social and legal norms. The person who assisted in procuring business needs to be reciprocated on festival or on the best opportunity. The assessee provided complete details of all gift items, ledger account and names of the person to whom gold coins were given. The assessee also furnished the name of jewellery house from whom the assessee purchased such gold coins. No investigation of facts was carried out by assessing officer. Majority of expenditure is on gold coins. Second major component is on account of various meetings, tours or club expenses. The assessee incurred such expenses in well-known Club or touring destination again no verificatio....
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....he assessee submits that assessee has shown nil income. Against the alleged professional receipt, the assessee set of carry forward losses and against remaining receipt, the assessee has shown business promotion expenses. The details of expenses furnished by assessee are not verifiable. The assessee has given various details in his ledger, majority of which are personal in nature. By referring certain entries like expenditure in SaJ Resort which is about Rs. 1,00,000/- at page no. 12, no details were furnished as to who has availed such resort facility. Similarly, the gold coins which are major part of business promotion and no address or PAN no. of such recipient was provided. How they assisted business is not disclosed by assessee. In the....