Income Tax Appellate Tribunal - Delhi
Amarjit Singh Lamba, New Delhi vs Ito, New Delhi on 11 September, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH : SMC : NEW DELHI
BEFORE SHRI R.S. SYAL, VICE PRESIDENT
ITA No.3164/Del/2017
Assessment Year : 2012-13
Amarjit Singh Lamba, Vs. ITO,
664, Aggarwal Chamber-3, Ward-16(1),
Vikas Marg, Shakarpur, New Delhi.
New Delhi.
PAN : AACPL2631E
(Appellant) (Respondent)
Appellant by : Shri Anil Kumar Khanna, Advocate
Respondent by: Ms Anchal Khandelwal, Sr. DR
Date of Hearing : 11.09.2017
Date of Pronouncement: 11.09.2017
ORDER
This appeal by the assessee is directed against the order passed by the CIT(A) on 20.02.2017 in relation to Assessment Year 2012-13.
2. The only issue raised in this appeal is against the confirmation of disallowance of Rs.1,68,418/-, being 20% of Sampling expenses incurred by the assessee.
ITA No.3164/Del/2017 2
3. Briefly stated, the facts of the case are that the assessee claimed Sampling expenses of Rs.8,42,092/-. On being called upon to explain the reason for increase in Sampling expenses from the previous year's figure of Rs.2,67,327/-, the assessee submitted that there was increase in the turnover as well. The Assessing Officer rejected the assessee's contention on the ground that the turnover increased only by 110% as against the increase in Sampling expenses to the tune of 300%. Considering these facts, he made a disallowance at 20% of Sampling expenses, which resulted into an addition of Rs.1,68,418/-. No relief was allowed in the first appeal. The assessee is aggrieved against such sustenance of disallowance.
4. Having heard the rival submissions and perusing the relevant material on record, it is observed that the assessee's contention about the actual incurring of Sampling expenses to the extent claimed in the Profit & Loss Account has not been controverted by the authorities with any cogent material. Simply because Sampling expenses have increased disproportionately in relation to the increase in the turnover, cannot be a reason in itself for making disallowance of part of sampling expenses on ad hoc basis. No worthwhile reason has been assigned by the authorities for ITA No.3164/Del/2017 3 making and sustaining disallowance @ 20% on total Sampling expenses incurred by the assessee. I, therefore, set aside the impugned order and direct granting of deduction of Sampling expenses to the tune of Rs.8,42,092/- as claimed by the assessee.
5. In the result, the appeal filed by the assessee is allowed. The decision was pronounced in the open court on 11th September, 2017.
Sd/-
(R.S. SYAL) VICE PRESIDENT Dated:11th September, 2017.
dk Copy forwarded to
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR Dy. Registrar, ITAT, New Delhi