IN THE HIGH COURT OF DELHI AT NEW DELHI 
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  08.11.2010 
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 Present: Ms. Rashmi Chopra,  Advocate for the Appellant. 
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 + ITA No. 1695/2010. 
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 While carrying out the assessment for the Assessment Year 2005-2006, 
 which is the subject matter of this appeal, the Assessing Officer noticed that 
 the assessee had shown expenses to the tune of ` 2584236/-  on account of 
 stationery items. According to the Assessing Officer expenses incurred were 
 abnormally high when  compared to the expenses on the same items in the 
 preceding year and on this account he restricted the expenses to ` 5 lacs and 
 the balance amount was disallowed. 
 The CIT(A) reversed this order of the Assessing Officer  allowing the 
 entire expenditure incurred on account of stationery. The CIT(A) found that the 
 assessee was not given any opportunity to explain the reasons why the expenses 
 in this year were much higher than the expenses incurred in the last year. 
 Before CIT(A) it was explained by the assessee that bulk purchase was made in 
 the stationery items in the said year. It was also explained that a lot of stamp 
 papers were purchased by the assessee firm for clients to execute various 
 agreements and these expenses have been debited under the head ?Printing and 
 Stationery?. Another reason which was furnished was that  major computerized 
 exercise was undertaken to improve the working of the firm and the firm has also 
 got in house heavy duty printers and a 
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 commercial quality photocopier to take care of increased heavy load of  printing 
 jobs. Finding this explanation as justified, reason for higher expenditure in 
 the year in question, the CIT(A) had allowed the same which decision is upheld 
 by the Income Tax Appellate Tribunal as well.  It is  a pure finding of fact the 
 two authorities below had accepted the explanation and have recorded the finding 
 that expenditure was in fact incurred. We are, therefore, of the opinion that no 
 substantial question of law arises. 
 Dismissed. 
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 A.K. SIKRI, J. 
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 SURESH KAIT, J. 
 NOVEMBER  08, 2010 
 hk 
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