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2017 (2) TMI 216 - ITAT COCHIN

2017 (2) TMI 216 - ITAT COCHIN - TMI - Disallowance of 1/4th expenses, being repairs and maintenances of car on account of personal use - Held that:- The assessee itself had added back 1/4th of depreciation on car for personal use. Therefore, 1/4th of other expenses, relating to the car, has been rightly disallowed by the Assessing Officer and confirmed by the CIT(A). Therefore, see no reason to interfere with the order of the CIT(A). Hence, ground is dismissed. - Disallowance being 1/4th of .....

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wrong and in fact, it was withdrawn from the firm - Held that:- It is seen from the cash flow statement that the assessee had wrongly credited the net profit of ₹ 52,318/- to the cash flow statement. The net profit from the business is credited to assessee’s current account in the books of account of the business and has not been withdrawn from there. Therefore, this amount of ₹ 52,318/-, shown in the cash flow, is rightly brought to tax as unexplained expenses. Hence, ground is als .....

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er sheet of the Assessing Officer, noticed that this addition has been made on an agreed basis and therefore, questioning this addition at this stage without filing necessary affidavit, is devoid of merits. Therefore, the addition is upheld. Hence, ground is also rejected. - ITA No 320/Coch/2010 - Dated:- 2-2-2017 - SHRI GEORGE GEORGE K, Judicial Member For The Assessee : Shri Arun Raj.S For The Revenue : Shri A Dhanaraj, Sr DR ORDER This appeal, at the instance of the assessee, is directed agai .....

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₹ 3,63,150/- and agricultural income at ₹ 25,000/-. The return was processed u/s 143(1). Thereafter, notice u/s 148 was issued on 27.4.2004. In response to the said notice, the assessee filed return of income on 26.5.2004 declaring a total income of ₹ 3,73,146/- and agricultural income of ₹ 25,000/-. The reassessment was completed vide order dated 30.8.2006 u/s 143(3) r.w.s 147 of the I T Act. In the reassessment completed, the total income of the assessee was fixed at &# .....

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ppeal to the Tribunal. The Tribunal, vide its order dated 8.3.2013 in ITA No. 320/Coch/2010, decided the issue on jurisdiction in favour of the assessee. The Tribunal followed the judgment of the Hon ble jurisdictional High Court in the case of M/s Abad Fisheries reported in 246 CTR 513. The Tribunal held that reassessment proceeding is invalid since the time limit for issuance of notice u/s 143(2) had not expired when the notice u/s 148 was issued to the assessee. Thereafter, the revenue filed .....

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ed 8.3.2013 and posted the same for hearing. It is in this context, the above appeal was posted for hearing before the Tribunal on 1.2.2017. 5 The ld counsel for the assessee Shri Arun Raj.S submitted that the reassessment is bad in law since the time limit for issuance of notice u/s 143(2) of the Act had not expired when the notice u/s 148 was issued. The above contention of the assessee is devoid of merits in view of the latest judgment of the Hon ble jurisdictional High Court in the case of A .....

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ought to have allowed the entire finance charge disallowed by assessing authority to the extent 1/4th ofRs.15, 898/- 11. The learned CIT(A) failed to examine an addition of ₹ 52,318/- made by the assessing officer as unexplained investment was withdrawal from current account. 12. The learned CIT(A) failed to examine appellant properly brought into account relating to the lorry transactions and also claimed TDS from the services. 13. The learned CIT(A) ought to have also deleted the additi .....

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humbly prayed that all the grounds may be adjudicated and justice rendered to the appellant. 7 The contention raised by the ld counsel for the assessee on the additions/disallowances made and confirmed by the CIT(A) on merits read as follows: i. As regards the disallowance of 1/4th of interest on car loan amounting to ₹ 9,162/-, it is pertinent to point out that the motor car was purchased exclusively for the purpose of business and the loan is also taken by the business. In the circumsta .....

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ments, it is pertinent to point out that the appellant did file a valuation report and the manner in which the Inspector deviated from that is not put to the appellant, so that the appellant did not get any opportunity to defend his case in an effective manner. In fact no extension or improvement to the existing building has been carried out by the appellant. The action of the assessing officer in entirely relying of the report of the Inspector who is not a qualified valuer, without giving the a .....

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ance made at ₹ 52,318/and as such there is no question of shortage of fund for the expenditure. v. As regards the addition on account of the TDS amounting to ₹ 5,254/- the income from lorry has been estimated under section 44AE and there is no warrant for adding the sum on account of TDS. 7.1 On the other hand, the ld DR filed a brief written submissions. The essence of the same is that the additions/disallowances made by the Assessing Officer were agreed additions/disallowances; and .....

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ason to interfere with the order of the CIT(A). Hence, ground no.9 is dismissed. 8.1 Ground no.10 is with regard to the disallowance of ₹ 15,898/- being 1/4th of travelling and sundry expenses, which are not supported by proper vouchers. This disallowance is an agreed disallowance by Chartered Accountant of the assessee and his signature is taken on the order sheet of the Assessing Officer to the above effect. Therefore, ground no.10 is without any substance and the same is dismissed. 8.2 .....

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