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The Tax PublishersWhere Except for the Debit Entries, Assessee did not Produce any Evidence to show that the Expenditure was Incurred Wholly and Exclusively for the Purpose of Business Expenditure, same not Allowable for Deduction while Computing Total Income
Akhilesh Kumar Sah
In Schwing Stetter (India) Private Limited v. DCIT [ITA No. 1361/CHNY/2015, A.Y.: 2006-07, decided on 3-1-2019] the assessee submitted that gifts were given to various customers and assessee had furnished all details of such gifts. According to him, these gifts were given for commercial expediency and the expenditure was incurred solely for the business of the assessee. Accordingly, expenditure was claimed as allowable. The Members of the ITAT observed that CIT(A) has specifically noted that except for the list of the debit entries, assessee did not produce any evidence to show that the expenditure was incurred wholly and exclusively for the purpose of business. In other words, assessee could not show the business expediency of the gifts, nor could identify the recipients. The Members of the ITAT held that in such circumstances, the claim was rightly disallowed by the AO.
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