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2016 (3) TMI 1220 - ITAT CHANDIGARHAddition of exhibition expenses - CIT(A) noted that no specific details of vouchers, which were not produced by the assessee have been mentioned. Therefore, it appears to be an addition on adhoc basis and accordingly, restricted the addition to ₹ 20,000/-- Held that:- The assessee has specifically stated before the learned CIT (Appeals) that it is not possible to get each and every voucher of expenses incurred during the course of exhibition. However, the learned CIT (Appeals) has already granted sufficient relief to the assessee. Therefore, in the absence of production of complete vouchers of expenses, the addition was rightly made of ₹ 20,000/-. This ground of appeal raised by the assessee is, therefore, dismissed. Addition of telephone and petrol expenses - Held that:- The addition is excessive in nature. The nature of business of the assessee is manufacturing of potato chips and assessee filed the return of income at ₹ 1,61,877/-. It is also admitted fact that the assessee has not maintained any details of these expenses. Therefore, personal usage of these items cannot be ruled out. However, considering the nature of the business of the assessee and return of income so filed, I reduce the addition to ₹ 10,000/- as against the addition of ₹ 30,000/-. Addition on account of household expenses - Held that:- Addition is still on excessive side. Even if no details of family contribution is filed, but it admitted fact that the assessee is living in joint family and other family members would also contribute for household expenses. Considering the nature of the business of the assessee and return of income filed at very low amount, the addition is restricted to ₹ 30,000/- as against ₹ 60,000/-. This ground is, therefore, partly allowed. Not allowing benefit of unabsorbed losses of earlier years - Held that:- The assessee claimed set off of unabsorbed losses. Something different is mentioned in the assessment order of preceding assessment year 2007-08. The carry forward of loss or depreciation is notified in assessment year 2007-08, therefore, it is to be seen whether late return for assessment year 2008-09 has any impact on carry forward of loss/depreciation. This fact has been looked into by the learned CIT (Appeals). Therefore, it also requires verification of fact whether it was brought forwarded losses or brought forward depreciation. In view of the above, I set aside the order of the learned CIT (Appeals) and restore this issue to the file of the learned CIT (Appeals) with direction to redecide this issue on merits strictly in accordance with law by verifying the factual facts from the record and shall also take into consideration the decision of the Hon'ble Punjab & Haryana High Court in the case of Haryana Hotels Ltd. (2005 (2) TMI 63 - PUNJAB AND HARYANA High Court )
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