2026 (5) TMI 1784

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....u/s 143(3) of the 1961 Act (DIN & Order No. ITBA/AST/S/143(3)/ 2023-24/1063794600(1)). 2. The brief facts of the case are that the assessee filed return of income for the impugned assessment year, on 02.11.2022, declaring total income at Rs. Nil. The same was processed u/s 143(1). The assessee is primarily engaged in motion picture, radio, television and other media activities. A survey u/s 133A was carried out on 10.09.2021 at the premises of the assessee at B-113, Sarvodaya Enclave, Delhi-110017. The return of income was selected by Revenue for compulsory scrutiny. Statutory notices u/s 143(2) and 142(1) were issued by the AO. The assessee participated in assessment proceedings. The AO observed that the assessee has incurred expenses o....

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....tors namely Mr. Abhinandan Sekhri and Mr. Raman Kirpal wherever they used vehicle for official purposes. The vehicles are owned by Directors. The company is not paying for maintenance, repairs and insurance etc.. These expenses were incurred wholly and exclusively for the purposes of business. It was submitted that despite incurring of all the expenses by the Directors, the assessee company has reimbursed only Rs. 1,10,721/- to the Directors towards petrol expenses used for business meetings. It was submitted that the assessee has already provided the vouchers, bills and receipts for the expenses incurred. It was submitted that the expenses were incurred wholly and exclusively for the purposes of business. It was submitted that it is not po....

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....essive, and ld. CIT(A) restricted the disallowance to 10% of the aforesaid expenses. Thus, the appeal of the assessee was partly allowed by ld. CIT(A). 4. Still Aggrieved, the assessee has filed second appeal with ITAT. The ld. Counsel for the assessee submitted that adhoc disallowance was made by the authorities below wrt Business Promotion Expenses, Petrol Expenses and Tour & Travel Expenses. It was submitted that the AO made disallowance of 25% of these expenses, while ld. CIT(A) restricted the same to 10% of these expenses. It was submitted that these expenses were incurred wholly and exclusively for the purposes of business of the assessee. My attention as brought to the paper book filed by the assessee containing 118 pages. My atte....

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....ours and Travel Expenses respectively. I have observed that the assessee has explained that these expenses were incurred wholly and exclusively for the purposes of business. The assessee has submitted details of these expenses along with the invoices for incurring these expenses. However, the assessee could not explain these expenses to the minutest details such as to with whom meetings took place and why meetings took place. The AO made adhoc disallowance of 25% while ld. CIT(A) restricted to 10%. The ld. CIT(A) duly recorded in his order that the assessee has indeed submitted extensive documentation, including ledger accounts and sample invoices for travel and restarent bills. For example, "Tour and Travel" record show specific flight boo....