Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (3) TMI 1736 - ITAT JAIPURCross-objection of the assessee - invoking of the provisions of s. 148 - reopening of the assessment - HELD THAT:- The Hon'ble apex Court in the case of Asstt. CIT v. Rajesh Jhaveri Stock Brokers (P.) Ltd. [2007 (5) TMI 197 - SUPREME COURT] has held that intimation and assessment are different. The reassessment proceedings can be initiated on the basis of the reasons recorded for reopening of the assessment. The AO has received information from Investigation Wing which showed that the documents found during the course of search in the case of M/s Ashish International Group, showed substantial unaccounted sales to the retailers. The assessee was one of the parties to whom that group has made unaccounted sales. The AO therefore, had reason to believe that the assessee has made unaccounted purchases. Hence, from the reasons recorded by the AO, it is clear that he has sufficient material for holding that there is an escapement of income and therefore, the AO has rightly issued the notice u/s 148 of the Act. disallowance of telephone expenses - HELD THAT:- The AO has disallowed 50 per cent of the telephone expenses. The disallowance made by the AO is excessive. After considering both the parties, we feel that it will be fair and reasonable to restrict the disallowance of telephone expenses to the extent of 1/6th. disallowance of 1/4th expenses of petrol/diesel expenses, car insurance, repairs and maintenance of vehicle and depreciation expenses - HELD THAT:- After hearing both the parties, it will be fair and reasonable to restrict the disallowances to the extent of 1/6th of the expenses. In the result, the appeal of the Revenue as well as the cross-objection of the assessee both are partly allowed.
|