TMI Blog2012 (10) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... paid on loan taken for purchase of vehicle, before the use of vehicle - Held that:- Since the assessee has not been able to controvert the finding of the A.O. nor placed any material either before lower authorities or before us, addition made is upheld - Decided against assessee - I.T.A. No.317/AHD/2012 - - - Dated:- 13-7-2012 - SHRI G.C.GUPTA SHRI ANIL CHATURVEDI, JJ. Respondent by : Mr.Vinod Tanwani,Sr.D.R. ORDER PER: SHRI ANIL CHATURVEDI,A.M. This appeal is filed by the assessee against the order of Ld. CIT (A)- XX, Ahmedabad dated 25-11-2012 for the assessment year 2008-09. 2. The assessee has raised the following grounds of appeal:- 1. The Ld. CIT (A) has erred in law and on facts while confir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cle has been utilized for a day . 3. At the time of hearing on 2-4-2012 none appeared and therefore the notice of hearing fixing hearing on 17-5-2012 was sent by R.P.A.D. However, on the date of hearing i.e. on 17-5-2012 also none appeared but an adjournment application dated 7-5-2012 was received stating the reasons that A.R. of the appellant is out of station on 17-5-2012. The said adjournment application was rejected by the Bench and therefore, it was decided to proceed on the basis of material on record. 4. The assessee is a proprietor of Kedarnath Corporation and is engaged in the business of trading and commission agent. The assessee filed its return of income on 26-9-2008 showing total income of Rs.7,67,390/-. The case was taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the purpose of business. The only reason for disallowance of membership fees is that the A.O. is of the view that the expenses is of enduring nature and therefore capital in nature. Hon ble Madras High Court in the case of C.I.T. vs. S. Venkatsubramanian (2007) 291 ITR 193 (Mad.) has held that the payment of admission fees as well as contribution to infrastructure development fund to acquire the membership card of Coimbatore Stock Exchange and to carry on the business on the floor of the stock exchange is a Revenue expenditure. 10. In view of the finding of the A.O. that the expenditure is for the purpose of business, the assessee is engaged in trading of grains and commission agents, the aforesaid decision of Madras high Court, we a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.O. and CIT (A), we do not find any infirmity with the order passed by the CIT (A) and therefore no interference is called for. Accordingly this ground of the assessee is dismissed. 14. The third ground is addition to the extent of 10% on vehicles, telephone and insurance etc, amounting to Rs.1,00,788/-. The assessee had claimed expenses of vehicle, telephone expenses as business expenditure. The A.O. was of the view that since the use of the vehicle for personal purpose could not be denied the same should have been disallowed. The A.O. therefore proposed 1/5th of such expenses for disallowance for which the assessee had no objection. The A.O. therefore disallowed 1/5th of Rs.5,03,940/- i.e. Rs.1,00,940/- and added to the income. Again ..... X X X X Extracts X X X X X X X X Extracts X X X X
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