9911796707
TMI Blog2013 (12) TMI 1266X X X X Extracts X X X X X X X X Extracts X X X X ..... /R-46(a). 3. That the Appellate authority wrongly and illegally confirmed the assessed income at Rs. 15,00,400/- against declared income of Rs. 3,03,900/- which gives NP Rate of 66% against the prevailing NP Rate around 15% in this business. 4. That the appellate authority has erroneously confirmed disallowance of Rs. 1,20,000/- out of salary expenses. 5. That the appellate authority has erroneously disallowed the total expenditure of Rs. 1,01,300/- incurred under the head advertisements besides being highly excessive a nd arbitrary. 6. That the appellate authority has erroneously confirmed the disallowance of Dewali expenses Rs. 47,210/- out of Rs. 47,390/-. 7. That the appellate authority has erroneously confirmed the total disallowa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no household expenses besides being highly excessive and arbitrary. 16. That the appellate authority wrongly and illegally interest the charging of interest u/s 234-B and 234-D." 17 That the appellate authority wrongly and illegally given a suo-moto finding in respect of initiation of penalty proceedings u/s 271(1)(c) although there is no ground of appeal before the appellate authority nor any notice is given to the appellant in this respect." 3. Ground No. 9 - After considering the rival submissions we find that during the assessment proceedings the Assessing Officer noticed that the assessee has claimed a sum of Rs. 67,672/- towards entertainment expenses. The assessee was required to furnish the bills for expenses exceeding Rs. 5,000/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mstances and considering the overall circumstances we are of the opinion that estimated sum of Rs. 25,000/- should be allowed out of entertainment expenses. Accordingly we set aside the order of the ld. CIT(A) and direct the Assessing Officer to allow a sum of Rs. 25,000/- out of entertainment expenses. 7. Ground No. 10 - After considering the rival submissions we find that during the assessment proceedings the Assessing Officer noticed that the assessee had claimed traveling expenses amounting to Rs. 6,32,439/- out of which original bills only for Rs. 90,717/- were produced. Bills for Rs. 50,017/- were produced on 22.2.2007 and the balance bills were produced on 19.11.2007. For rest of the expenses only narrations like "cash paid for Dehr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee. What ever bills for traveling extra can be located, had already been filed but the Assessing Officer has not appreciated that most of the expenses relate to Taxi fare, local conveyance etc. for which no bills are available. 9. On the other hand, the ld. DR for the revenue strongly supported the orders of Assessing Officer and the ld. CIT(A). 10. After considering the rival submissions we find some force in the submissions of the ld. counsel of the assessee. It is a fact that generally no receipt can be obtained from Taxi operator or for local conveyance, auto rikshwa or manual rikshwa. Similarly the expenditure made for refreshment to various agents for which vouchers may not be available. Considering the overall circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of the Assessing Officer. 14. After considering the rival submissions we agree with the submissions of the ld. counsel of the assessee that atleast depreciation should have been allowed as the expenditure incurred for purchase of Nokia Hand Set was treated as capital expenditure. Further Chandigarh Bench of the Tribunal is consistently holding that for telephone only 10% of the telephone expenses is to be treated for personal usage. Accordingly we set aside the order of the ld. CIT(A) and direct the Assessing Officer to allow depreciation on purchase of Nokia Hand Set and restrict the disallowance of expenses on account of personal usage to 10%. 15 Ground No. 14 - During the assessment proceedings the Assessing Officer noticed that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... surance Premium of Rs. 1,30,980/-, then it was not possible to maintain household in an amount of Rs. 30,000/- which also included payment of Rs. 12,232/- as electricity charges. Accordingly the Assessing Officer estimated the household expenses at Rs. 10,000 pm and after allowing credit of Rs. 30,000/-, made disallowance of Rs. 90,000/-. This addition was confirmed by the ld. CIT(A). 20. Before us, the ld. counsel of the assessee submitted that the Assessing Officer has not brought any material on record to show higher estimate of household expenses. Further no credit has been given for withdrawal made by the wife of the assessee at Rs. 13,756/- and therefore, the addition was not justified. 21. On the other hand, the ld. DR for the reve ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
