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2016 (6) TMI 176 - ITAT DELHI

2016 (6) TMI 176 - ITAT DELHI - TMI - Payment to assessee's husband towards professional assistance given by him - Held that:- The assessee enjoys income from pension and medical practice in the field of Cardiology and the assessee also refers patient to various hospitals and had disclosed professional fees which is not a minor income. - Towards earning such huge professional income, the assessee paid a small amount to her husband Shri Pradeep Arora, which is a retired engineer from M/s Seimens .....

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onal charges paid to her husband has been incurred against professional assistant extended by him (her husband Shri Pradeep Arora) to her after his retirement from an administrative managerial post. In this situation, we decline to accept disallowance made by A.O and upheld by the CIT(A) and thus we demolish the same. In view of our forgetting discussion, the A.O is directed to delete the addition and to allow the claim of the assessee in this regard. - Decided in favour ofassessee

De .....

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isallowance made by the A.O of ₹ 8,625/- was not called for and we dismiss the same

So far as, the depreciation claimed by the assessee on new Honda City Car is concerned the A.O wrongly noted that the car was purchased on 31/3/2006 whereas per list of dates and events the Honda City Car was purchased on 21/3/2006 as per submissions of the assessee. We are not inclined to accept contention of the A.O that the utilization of Honda City Car from professional activity and for stand .....

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e Honda City is not called for and we direct the A.O to allow the same - Decided in favour of assessee

Disallowance @ 20% of expenses debited under the head car repair maintenance, car running and maintenance - Held that:- Assessee has claimed depreciation on both the cars and we are unable to see that the assessee has any other car for personal use, in this situation, the element of personal use of a car cannot be ruled out and the use of cars for personal use has to be presumed in t .....

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r running maintenance and repair expenses on account of personal use by the assessee - Decided partly in favour of assessee - I.T.A. No. 586 /Del/2012 - Dated:- 30-5-2016 - Shri S. V. Mehrotra, Accountant Member And Shri Chandra Mohan Garg, Judicial Member For the Appellant : Sh. Ajay Kumar Sharma, ADV For the Respondent : Ms. Kesang Y. Sherpa, Sr. DR ORDER Per Chandra Mohan Garg, JM This appeal has been filed by the assessee against the order of the Commissioner of Income Tax (Appeals)-Ghaziaba .....

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nt was completed under the provisions of Section 143(3) of Income -tax Act. 3. Briefly stated the facts raised to this appeal are that the Assessing Officer selected the case for scrutiny and completed the assessment u/s 143 (3) of the Income-tax Act 1961 (for short the Act) on 21/11/2008 at total taxable income of ₹ 14,61,750/- as against the return income of ₹ 9,87,160/- by making certain disallowances pertaining to expenditure incurred in availing the professional services of the .....

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Ld. AR further pointed out that the husband of the assessee is a retired engineer from Seimens s Co. and he devoted full time to assist professional activities of the assessee through the entire period under consideration and this expenditure was claimed by the assessee and allowed by the Revenue in the earlier and subsequent assessment years also. 5. Replying to the above, the Ld. Departmental Representative (DR) submitted that, there is no big establishment of the assessee for which the asses .....

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rve that neither the A.O nor the CIT (A) has controverted this fact that the husband of the assessee is a retired engineer who has full time to devote towards professional assistance for her wife in her professional career as a medical practitioner. The Ld. DR could not controvert this fact that the similar expenditure was allowed to the assessee for earlier and subsequent assessment year. 7. From the facts noted by the CIT(A) in Para 2 it is clear that the assessee enjoys income from pension an .....

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Therefore, this payment of professional charges made by the assessee cannot be held as unreasonable or bogus. We cannot forget this fact that similar claim of the assessee has been allowed by the Revenue during the earlier and subsequent assessment year and we are unable to see any valid reason to make such disallowance which has been established by the assessee by way or proper explanation that the professional charges paid to her husband has been incurred against professional assistant extend .....

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ointed out that the Assessing Officer has erred in disallowing the depreciation claimed in the return on purchase of Honda City to ₹ 51, 492/- and that new car of ₹ 8,625/- with facts and circumstances of the case. The Ld. Counsel of the assessee pointed out that the Assessing Officer made disallowance by taking into consideration irrelevant and incorrect facts. Therefore, the disallowance made by the A.O and upheld by the CIT (A) may kindly be dismissed. 9. Replying to the above, th .....

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m of deprecation worked out at ₹ 8,625/- was rightly disallowed by the A.O and CIT(A) was quite justified in upholding the same. 10. On careful consideration of above rival submissions, we note that after reproducing assessment order, the CIT(A) decided the issue in para 5.2 and arrived at the conclusion that the assesssee, a medical practitioner does not need two cars to operate of her profession and the explanation of the assessee in this regard is not acceptable. On this issue, the main .....

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ew car the sale consideration of old car may be deducted from but for calculation of deprecation the total cost of a new car has to be taken into consideration and thus, disallowance made by the A.O of ₹ 8,625/- was not called for and we dismiss the same. So far as, the depreciation claimed by the assessee on new Honda City Car is concerned the A.O wrongly noted that the car was purchased on 31/3/2006 whereas per list of dates and events the Honda City Car was purchased on 21/3/2006 as per .....

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stand by to fulfill her responsibility of the professional work. Therefore, disallowance of deprecation made by the A.O and upheld by the CIT(A) on newly purchase Honda City is not called for and we direct the A.O to allow the same. Accordingly, Ground No. 2 of the assessee is allowed. GROUND NO. 3 11. Apropos Ground No. 3, the Ld. Counsel of the assessee pointed out that the Assessing Officer also made ad-hoc and arbitrary disallowance of ₹ 54,475/- @ 20% of expenses debited under the hea .....

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