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Income Tax Appellate Tribunal, “D” Bench, Mumbai
O R D E R Per Shamim Yahya (AM) :- These are appeals by the assessee directed against respective orders of learned Commissioner of Income Tax (Appeals) [in short learned CIT(A)] wherein he has sustained 20% disallowance out of travelling expenses as under :-
Assessment year 2012-13 Rs. 7,98,391/- Assessment year 2014-15 Rs. 9,40,868/-
Brief facts of the case are that the assessee in this case is engaged in the business of planning and buying of media space/time on behalf of clients. The Assessing Officer in this case made a disallowance of 20% of the foreign travelling expenditure incurred by the assessee. The assessing officer noted that assessee has given the details of the expenditure. However, he opined that personal element cannot be ruled out. He mentioned that assessee has not submitted the invoice and the purpose. What sort of invoice the assessing
2 Mediaedge:CIA(India) Pvt. Ltd. officer was looking for has not at all been spelt out. Learned CIT(A) has upheld that order.
Against this order assessee is in appeal before us. We have heard learned departmental representative and perused the records.
As evident from the above the disallowance of the travelling expenses has been done on the basis of surmise and conjecture without any cogent finding regarding the exact anomaly. It is settled law that disallowance is based on surmise and conjecture are not sustainable. There is no presumption also that there has to be an adhoc personal element in such type of expenditure as opined by Revenue authority. In this view of the matter we set aside the orders of authorities below and delete the disallowance.
In the result, these appeals by the assessee stand allowed.
Pronounced in the open court on 9.3.2021.