SHREE RAJ RAJESHWARI PAP CHEM INDUSTRIES P.LTD,MUMBAI vs. DCIT 9(3), MUMBAI

The captioned appeal by assessee for Assessment Year [AY] 2011-12 assails the order of the Ld. Commissioner of Income-Tax (Appeals)-21 CIT(A)], Mumbai, Appeal No. CIT(A)-21/DCIT-13(2)(1)/IT- 155/2014-15 dated 19/08/2015 qua confirmation of certain disallowances Shri Raj Rajeshwari PAP Chem Industries Pvt. Ltd. Assessment Year-2011-12 amounting to Rs.21,29,480/-. None has appeared for assessee despite notice and no adjournment application is on record. Left with no option, we proceed to dispose-off the same on the basis of material available on record and after hearing Ld. Departmental Representative [DR]. The registry has noted that the appeal has been filed with a delay of 2 days. Keeping in view the minor delay, we condone the same. The assessment for impugned AY was framed by Ld. Deputy Commissioner of Income Tax 9(3), Mumbai [AO] u/s 143 (3) of the Income Tax Act, 1961 on 29/03/2014.

Briefly stated the assessee being resident corporate assessee engaged as manufacturer and dealer of paper and paper board was assessed u/s 143(3) at Rs.1,24,75,788/- under normal provision as against returned income of Rs.89,67,020/- filed by the assessee on 30/03/2013. The sole subject matter of this appeal is disallowance of Staff Welfare expenses amounting to Rs.21,29,480/-. 3. During assessment proceedings it was noted that the assessee debited staff welfare expenses of Rs.25,88,160/- out of which Rs.21,29,480/- was incurred by the directors of the assessee company by way of credit card towards hotel expenses and purchase of dress materials. Since the expenses were not related to the business, the same were disallowed and added to the income of the assessee. The same has since been confirmed by Ld. CIT(A) upon further appeal vide impugned order dated 19/08/2015. Aggrieved, the assessee is in further appeal before us. The Ld. DR has placed reliance on the stand of lower authorities.