TMI Blog2011 (7) TMI 574X X X X Extracts X X X X X X X X Extracts X X X X ..... e on adhoc basis without there being any material which would justify that the amount had been spent for personal use of the directors - Decided in favour of assessee. - IT APPEAL NO. 535 OF 2010 - - - Dated:- 20-7-2011 - ADARSH KUMAR GOEL, AJAY KUMAR MITTAL, JJ. Ms. Urvashi Dhugga for the Appellant. JUDGMENT Ajay Kumar Mittal, J. This appeal under Section 260A of the Income-Tax Act, 1961 (for short "the Act") has been filed by the revenue against the order dated 18.11.2009, passed by the Income Tax Appellate Tribunal Delhi, Bench 'G', New Delhi (in short "the Tribunal") in ITA No. 2698/Del./2009 relating to the assessment year 2005-06. 2. The following substantial questions of law have been claimed for determinati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The facts, in brief, necessary for adjudication as narrated in the appeal, are that the respondent-assessee Company deals in manufacturing and trading of capital goods, viz. dairy, salt, pharmaceuticals plant etc. It filed return for the assessment year in question on 30.10.2005 declaring an income of Rs. 51,52,950. Assessment under Section 143(3) was, however, completed on 19.12.2007 at Rs. 72,46,540 wherein certain additions and disallowances were made by the assessing officer. 4. The Commissioner of Income Tax (Appeals) [for short "the CIT(A)"], partly allowed the appeal of the assessee vide order dated 30.30.2009 whereby a relief of Rs. 17,97,501 was granted to the assessee. 5. Feeling aggrieved the revenue preferred appeal to the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w. Moreover, the jurisdictional Tribunal in the appellant's own case vide order dated 28.11.2008 in ITA No. 4393/Del/2007, assessment year 2004-05 on identical facts in para 5 has deleted such disallowance by following its own order dated 31.5.2007 in ITA No. 2051/Del/05 for the assessment year 2001-02. Therefore, the issue having been finally clinched by the last finding authority, the disallowance of Rs. 5,72,091 is deleted." 9. It was noted that the disallowance was made on adhoc basis without there being any material to justify such disallowance. No specific instances of expenditure had been pointed out which may disentitle the assessee's claim for site expenses. The findings on appeal were affirmed by the Tribunal. No error of law or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Tribunal in the case of DCIT v. Haryana Oxyzen Ltd. [1999] 76 ITD (Del) 32 and many other judicial decisions have held that company is a juristic entity and if any disallowance has to be made out of such expenditure, it should be made in the hands of its Director which would be treated as "per-requisite" in their hands. Further, the jurisdictional Tribunal in the appellant's own case in the assessment year 2001-02 vide their order dated 31.5.2007 have deleted such disallowance in ITA No. 2051/Del/05. Therefore, both the disallowances are deleted." 11. The CIT(A) had concluded that the audited books of account along with vouchers were produced by the assessee and thereafter the assessing officer had failed to show that the said expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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