MANA CONSTRUCTIONS,NAGPUR vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-2, NAGPUR

It emerges during the course of hearing that the assessee’s sole substantive grievance canvassed in the instant appeal challenges correctness of the CIT(A)'s action partly

Learned counsel vehemently argued during the course of hearing that both the lower authorities have erred in law and on facts in disallowing the assessee’s sales promotion expenditure representing various payments made to Hotel Radisson Blu Hotel, Nagpur. He sought to buttress the point that the assessee had duly placed on record all the relevant photographs, paper advertisements, minutes of meeting and attendance of the agents etc. before the lower authorities. We are of the considered opinion that mere filing of such documentary evidences hardly comes to assessee’s rescue once it has failed to prove that the impugned expenditure had been incurred wholly and exclusively for the purpose of its business. We thus find merit in the CIT(A)'s foregoing detailed discussion that the assessee could not discharge it’s corresponding onus in respect of the impugned sales promotion expenditure claim. This is indeed coupled with the fact although not strictly relevant; that the Assessing Officer had disallowed various expenses totalling to Rs.50,67,769/- under various heads of petty contract expenses, work expenses and business promotion expenditure which have been confirmed to the extent of Rs.3 lakhs only in the CIT(A)'s lower appellate discussion. Faced with the situation, we find merit in the Revenue’s vehement arguments in supporting both the learned lower authorities action making the impugned disallowance.

This assessee’s appeal is dismissed in above terms.