TaxTMI 
TaxTMI 
2025 (10) TMI 289
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....ter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 28.12.2019. The registry has noted delay of 3 days in the appeal of the revenue. Similar delay of 93 days has been noted in assessee's appeal. Both the delays stand condoned and we proceed for disposal of cross-appeals on merits. 1.2 The grounds taken by the assessee are as under:- 1. The order of the learned Assessing Officer is against the law and facts of the case. 2. The appellant case was subject to Tax Audit. The appellant maintains regular books of accounts such as cash book, ledger, bank book etc. The appellant has maintained proper vouchers for all the expenses claimed by the appellant. 3. The appellant is carrying on t....
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....enses for marketing its products. 5. ln the case of appellant scrutiny assessment has been completed for the A.Y 2012-13, A.Y 2013-14 and A.Y 2014-15. While completing the assessment u/s.143(3) the Assessing Officer has completed the assessment by accepting the sales promotion expenses. No additions were made. towards sales promotion expenses for the above assessment years. 6. The Assessing Officer has made the above addition without any material evidence. The Assessing Officer has made a comment that vouchers for the month of July 2016 were self-made. Hence 75 (percentage) of the total expenses claimed under sales promotion expenses are disallowed. The Assessing Officer has made the addition towards sales promotion expens....
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.... evidences and facts. 9. The appellant prays that the additions made by the Assessing Officer towards disallowance of sales promotion expenses Rs. 5,00,00,000 and chit loss Rs. 500,000 may kindly be deleted and justice be rendered. 10. The appellate proceeding with Hon'ble CIT(A), given partial relief to the appellant as there was an error on the sales promotion expenses figure which is apparent on the record and incorrect amount taken by Id AO as Rs 6,69,48,093/- out of which, Id AO disallowed Rs. 5 crore whereas actual expenses claimed in the audited financial was Rs. 4,00,24,419/- only. Hence the Id CIT on pointing out this factual error, had allowed the appellant contention partially, but while passing the order ma....
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.... promotion expenses @ 25% of actual expenses debited in profit & loss account without appreciating the fact that assessee is retail and whole sale traders and generally promotion of brands is done by brand owners not by traders. 3. For these and other grounds that may be adduced at the time of hearing, it is prayed that the order of the Ld. CIT(A) be set aside and that of the Assessing Officer be restored. As is evident, the sole subject matter of appeal is disallowance of sales promotion expenses. 1.4 The Ld. AR advanced arguments and stated that the expenses were in the nature of petty incentives given to the employees of purchasers. It has been stated that expenditure is as per business practice and the claim has been allo....
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....ar brands and new brands. It was pointed out that the books were subjected to Audit and the same were not rejected. The expenditure merely constitutes 2.94% of the sales turnover of the assessee. The assessee again furnished complete details of incentive paid along with quantitative details as well as the ledger extract of sales promotion expenses. Further, the assessment for AYs 2012-13 to 2014-15 was scrutinized wherein this claim was accepted and no such disallowance was made. No material was brought on record to establish that the claim as not genuine. 2.3 The Ld. CIT(A) observed that the assessee did not furnish partywise details, confirmations etc. to justify claim of sales promotion expenses. From self-made vouchers, it could not ....