TMI Blog2016 (8) TMI 687X X X X Extracts X X X X X X X X Extracts X X X X ..... of travelling expenses which could not be reimbursed from the clients and which is not expressly linked with his personal use or used by the family members then the same deserves to be allowed as professional expenses. Thus, we inclined to demolish conclusion to the authority below and direct the AO to allow the same as professional expenses. Disallowance for personal uses of telephone, car maintenance and car lease - Held that:- The assessee could not show us, the assessee was having any other telephone or car exclusively for his personal use. Therefore, the element of personal use cannot be ruled out and part disallowance in this regard is obvious. However, we made pointed out that the 1/3rd amount was disallowed is very high after ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n expenses of the assessee - ITA No. 879/Del./2014 - - - Dated:- 18-7-2016 - Sri S.V.Mehrotra, AM And Sri C.M.Garg, JM For The Assessee : Sh. Deepak Kapoor, Adv. For The Revenue : Ms. Rakhi Bimal, Sr. DR ORDER PER C.M.Garg, J.M. This appeal by the assessee has been filed against the order of the CIT(A)--I, New Delhi dated 16.12.2013 was in first appeal no. 108/12-13 for AY 2010-11. Grounds raised by the assessed read as under :- 1. Because on facts and in law and on grounds taken and basis adopted, the addition to the total income of the assessed on account of disallowance to the extent of ₹ 3,48,186/- is totally wrong, unjustified and illegal. 2. Because the Assessed has incurred expenses for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 2007 and subsequently the assessee took independent consultancy work for ITU and World Bank and he was given advisory work by Vaishnavi Advisory Services (Pvt.) Ltd. and other consultancy firms. The ld. Counsel also explained that the assessee took work from MF Global Consultancy firm and made presentations in various countries regarding their investments in power sector in India and this work involved lot of preparation by the assessee and the travel expenses as well as advisory fees payment by advisory global. The ld. Counsel pointed out that travelling account ledger placed that page no. 53-54 of the assessee s paper book shows travelling expenses incurred by the assessee and reimbursed by the clients and also shows remaining amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee for his personal use or for his family members or the amount claimed is bogus or incorrect. 6. From relevant operative part 3.1 of the Assessing Officer, we observe that the Assessing Officer made this addition by the only alleging that travelling expenses claimed by the assessed which were not reimbursed to him by the said companies cannot be allowed and the AO treated the same of personal in nature and not linked to the assessee s professional receipt. We are not in agreement with this conclusion because when the assessee is offering to tax entire professional receipt from consultancy profession amounting more then ₹ 1.54 crores and if some amount of travelling expenses which could not be reimbursed from the clients and which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. On the issue of one third disallowance of ₹ 2,22,974/- i.e. ₹ 74,264/- for personal uses of telephone, car maintenance and car lease. The ld. Counsel submitted that there was no element of personal use of telephone and car, therefore, this disallowance cannot be held as sustainable. The ld. DR strongly supported the action of the AO and pointed out that the assessee has claimed entire expenses incurred on telephone and car and the element of personal use cannot be ruled out. Therefore, the AO was quite correct in making disallowance of 1/3rd of claimed expenditure. 10. On careful consideration of above submissions, we are of the view that on specific query from the bench. The Ld. Counsel of the assessee could not show us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat when the assessed is offering ₹ 1.54 crores as professional fees for tax then the amount of ₹ 1.60 lakh is very meager amount towards meeting with the clients which cannot be disallowed on bald and vague allegations. 13. The ld. DR oppose the contentions of the ld. Counsel of the assessee and supported the first appellate order by drawing our attention to para 3.4 of the order of the CIT(A). 14. On careful consideration on above submissions, we are of the view that the consultancy business. The assessed is required to meet various clients at his office and also at the other locations as per convenience of his clients. For this purpose, the assessed has used India International Centre, Delhi Gymkhana Club, Noida Golf Cl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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