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आदेश/Order
Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the assessee against the order dated 01.03.2017 of the Principal Commissioner of Income Tax, Chandigarh [hereinafter referred to as ‘PCIT’].
The sole issue raised by the assessee in this appeal is regarding the exercise of revision jurisdiction by the Ld. PCIT u/s 263 of the Income- tax Act, 1961 (in short 'the Act') and thereby disallowing the ‘Langar’ (free food) expenses incurred by the assessee claimed as ‘business expenditure’. The assessee claimed that the aforesaid ‘Langar expenses’ were incurred for the promotion and growth of business. However, the Ld.
ITA No. 525-Chd-2017- Sh. Parminder Singh, Chandigarh 2
PCIT noted that the assessee could not link the aforesaid Langar expenses
with the business activity of the assessee.
Before us, Ld. Counsel for the assessee has submitted that the
assessee is running a petrol pump and ‘langer’ (free food) was offered to
the general public at the business site so as to make aware the public about
the running of petrol pump and also to attract customers as also to show
his goodwill gesture to the customers. The entire exercise was done to get
and attract the customers.
Considering the meager amount of expenditure incurred on the
‘Langer’ by the assessee and the above submissions of the Ld. Counsel for
the assessee, we do not find it a fit case for exercising of revision
jurisdiction by the Ld. PCIT as it cannot be said in strict term that the
motive of the expenditure was not for getting growth of the business.
In view of the above, the impugned order of the Ld. PCIT is set aside
and the appeal of the assessee is hereby allowed. Order pronounced in the Open Court on 20.11.2018.
Sd/- Sd/- (अ�नपूणा� गु�ता / ANNAPURNA GUPTA) (संजय गग� / SANJAY GARG) लेखा सद�य/ Accountant Member �या�यक सद�य/ Judicial Member Dated : 20.11 .2018 “आर.के.” आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. आयकर आयु�त (अपील)/ The CIT(A) 5. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File
ITA No. 525-Chd-2017- Sh. Parminder Singh, Chandigarh 3
आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar