SATISH CHANDRA, J. - (1.) HEARD Sri R.B. Shukla, learned counsel for the appellant and Sri D.D. Chopra, learned counsel for the respondent.
(2.) PASSED by the Tribunal, Lucknow Bench 'A', Lucknow in ITA No. 344/Luck/2007 with respect to the asst. yr. 2003 -04.
(3.) THE brief facts of the case shows that the assessee is engaged in the hotel business. During scrutiny, the AO found that the assessee had debited in the P&L a/c a sum of Rs. 4,47,545 as lodging commission. The assessee mentioned that lodging commission was paid to rickshaw -pullers, auto drivers for bringing the customers to hotel from bus -stand and railway station. On verification, the AO found that the vouchers were self -made bearing smudged thumb impressions. The AO also noticed various discrepancies as mentioned in his order, so he has disallowed the total claim of the assessee by observing that the assessee had tried to evade tax by adopting malpractice by preparing false vouchers. However, CIT(A) by looking the business needs and practice in the line of business has allowed 50 per cent expenditure claimed by the assessee. The Tribunal by the impugned order has disallowed 40 per cent of the total claim by the assessee. Learned counsel for the appellant submitted that the expenditures were made for the purposes of business and as such the Tribunal ought to have allowed the entire expenditure incurred by the appellant. He further submitted that it was not proper for the Tribunal to disallow 40 per cent of the expenditure which was in fact made by the appellant for promotion of the business. Learned counsel for the appellant has relied upon the following decisions : 1. Dy. CIT vs. Super Tannery (India) Ltd. (2005) 274 ITR 338 (All) 2. Raj Kumar Daya Shankar vs. CIT (1972) Tax 22 (3) -49 (All) 3. CIT vs. South India Corporation (Agencies) Ltd. (2007) 209 CTR (Mad) 233 : (2007) 290 ITR 217 (Mad) 4. CIT vs. Walchand and Co. (P) Ltd. (1967) 65 ITR 381 (SC) 5. J.K. Woollen Manufacturers vs. CIT (1969) 72 ITR 612 (SC) 6. S.A. Builders Ltd. vs. CIT (2006) 206 CTR (SC) 631 : (2007) 288 ITR 1 (SC) 7. Sri Venkata Satyanarayna Rice Mill Contractors Co. vs. CIT (1997) 137 CTR (SC) 267 : (1997) 223 ITR 101 (SC) 8. Sanjeevi and Co. vs. CIT (1966) 62 ITR 156 (Mad) 9. CIT vs. Coimbatore Salem Transport (P) Ltd. (1966) 61 ITR 480 (Mad) 10. CIT vs. City Ahmedabad Spring. and Wvg. Mfg. Co. (1994) 207 ITR 427 (Guj) ;