TaxTMI 
TaxTMI 
2026 (8) TMI 42
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....referred to as 'the Act'. Case called twice. None appears at the assessee's behest. It is accordingly proceeded ex-parte. Assessee's appeal ITA No. 2084/Del/2011; A.Y.: 2005-06 2. The assessee pleads the following substantive grounds in the instant appeals: "Ground No. 1: The L.d. Commissioner of Income Tax (Appeals) - I, New Delhi (hereinafter referred to as 'Ld. CIT(A)'), has erred in law and on the facts and in the circumstances of the case in upholding the various additions / disallowances made in the Assessment Oder dated 22.07.2008. Ground No. 2: The Ld. CIT(A) has erred in law and on facts and in the circumstances of the case in confirming the disallowance of Business Promotion expenses of Rs. 22,14....
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....cts and in the circumstances of the case in confirming the addition of Rs. 2,30,079/- on account of accrued interest income on FDRs. Hence, the appellant prays that this addition of Rs. 2,30,079/- upheld by the Ld. CIT(A) should be deleted. Ground No. 8: The Ld. CIT(A) has erred in law and on facts and in the circumstances of the case in confirming the disallowance of expenses of Rs. 6,35,605/- booked under the head 'Business Promotion Expenses'. Hence, the appellant prays that this disallowance of Rs. 6,35,605- upheld by the Ld. CIT(A) should be deleted. Ground No. 9: The Ld. CIT(A) has erred in law and on facts and in the circumstances of the case in confirming the adhoc disallowance on account of LC ch....
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.... authorities' respective assessment and lower appellate findings making all the impugned disallowance/additions herein in the assessee's hands do not warrant any interference on our part. 4. It is in this factual backdrop that we proceed to deal with the assessee's first and foremost substantive ground claiming business promotion expenses of Rs. 22,14,395/- as disallowed in both the learned lower proceedings. A perusal of the learned CIT(A) lower appellate discussion from page no. 18 onwards suggests that it appears to have organized sahara award night(s), sahara state exhibition, golf tournaments etc which indeed appears as in the nature of the expenses incurred wholly and exclusively for the purpose of the business although it appears ....
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....ithout looking at the expenditure item itself which prima facie appears to have been incurred wholly and exclusively for the purpose of the business u/s. 371(1) of the Act. Deleted accordingly. 7. The assessee's fifth substantive ground is that both the learned lower authorities erred in law and on facts in disallowing the loss on account of foreign currency fluctuation of Rs. 96,94,578/- in their respective detailed discussions. Learned CIT(DR) takes us to page nos. 113 to 114 in the CIT(DR)'s order that the assessee had indeed failed to explain the same as per schedule 20 of its annual account/balance-sheet along with the corresponding supportive details. We thus confirm the impugned foreign currency fluctuation loss claim disallowance....
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....llowance @ 10% of expenses incurred on consumption of Engineering Store and Printing & Stationery items etc amounting to Rs. 3,93,03,134/-. We are of the considered view that although it had failed to plead and prove all the corresponding facts in both the learned lower proceedings, the same could not be disallowed at such a higher rate of 10% as well. We thus restrict the impugned disallowance @ 5% only with a rider that the same shall not be treated a precedent. 11. The assessee's tenth substantive ground raises the next issue of unsupported expenditure item claims to the tune of Rs. 15,28,23,194/- disallowed in para 17-19 of the assessment order as upheld at page 215 of the learned CIT(A)'s lower appellate discussion. The assessee has....