The assessee, a Partnership firm, carrying on warehousing business and also engaged in the manufacturing of wooden articles for the use of textile industry. The income derived from these two activities were offered as business income. During the course of assessment proceedings, Ld. AO observed that assessee had debited the sum of Rs.2,04,186/- towards sales promotion expenses in its warehousing business. On verification, Ld. AO observed that this expenditure of Rs.2,04,186/- pertains to purchase of Gold & Silver which were given to various customers for promoting business. The Ld. AO disallowed the said expenditure by holding that such expenditure so incurred had got nothing to do with warehousing activity of the assessee. This action of the Ld. AO was upheld by the CIT (A). Aggrieved by the same, assessee filed an appeal before the Tribunal. The Tribunal observed that no details were provided to ascertain whether similar items of expenditure in the form of purchase of gold and silver were incurred in the past and whether the expenses were allowed as revenue expenditure by the Department for the earlier years. Though the assessee produced the bills for incurrence of purchase of gold and silver it had not established the nexus between the incurrence of this expenditure vis-a-vis the warehousing revenue derived by it. Hence, disallowance of the claim of Rs.2,04,186/- towards sales promotion expenses was justified. (ITA No. 380/Mum/2017 & ITA No.7556/Mum/2016,  dt.19.12.2018. (AY. 2012-13)