TMI Blog2016 (3) TMI 1220X X X X Extracts X X X X X X X X Extracts X X X X ..... enses, the addition was rightly made of ₹ 20,000/-. This ground of appeal raised by the assessee is, therefore, dismissed. Addition of telephone and petrol expenses - Held that:- The addition is excessive in nature. The nature of business of the assessee is manufacturing of potato chips and assessee filed the return of income at ₹ 1,61,877/-. It is also admitted fact that the assessee has not maintained any details of these expenses. Therefore, personal usage of these items cannot be ruled out. However, considering the nature of the business of the assessee and return of income so filed, I reduce the addition to ₹ 10,000/- as against the addition of ₹ 30,000/-. Addition on account of household expenses - Held t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court ) - ITA No. 116/Chd/2016 - - - Dated:- 3-3-2016 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER For The Appellant : Shri Ajay Jain For The Respondent : Shri S.K. Mittal, DR ORDER This appeal by the assessee has been directed against the order of learned Commissioner of Income Tax (Appeals)-2, Ludhiana dated 9.12.2015 for assessment year 2008-09. 2. I have heard the learned representatives of both the parties and perused the material on record. 3. The ground No.1 is general and needs no adjudication. 4. On ground No.2, the assessee challenged the addition of ₹ 20,000/- out of exhibition expenses. The assessee had claimed expenses of ₹ 5,47,092/- under the head exhibition expenses . The A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This ground of appeal raised by the assessee is, therefore, dismissed. 7. On ground No.3, the assessee challenged an addition of ₹ 30,000/- out of telephone and petrol expenses. The assessee had claimed expenses of ₹ 96,032/- and ₹ 49,418/- on account of telephone and petrol expenses respectively. The Assessing Officer was of the view that personal use of telephone cannot be ruled out and accordingly, disallowed ₹ 30,000/-. 8. It was submitted before the learned CIT (Appeals) that no material was brought on record to point that specific vouchers were not produced. The addition has been made on adhoc basis. However, the learned CIT (Appeals) found that the assessee has not maintained any call details/log book, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled. 9. On consideration of the rival submissions, I am of the view that addition is still on excessive side. Even if no details of family contribution is filed, but it admitted fact that the assessee is living in joint family and other family members would also contribute for household expenses. Considering the nature of the business of the assessee and return of income filed at very low amount, the addition is restricted to ₹ 30,000/- as against ₹ 60,000/-. This ground is, therefore, partly allowed. 10. On ground No.5, the assessee challenged the order of the learned CIT (Appeals) in not allowing benefit of unabsorbed losses of earlier years without appreciating the fact that the assessee is entitled to set off of unabs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed following the judgment of Hon'ble Supreme Court in the case of Goetze (India) Limited (supra). 12. On consideration of the rival submissions, I am of the view that the matter requires reconsideration at the level of the learned CIT (Appeals). The Hon'ble Delhi High Court in the case of CIT Vs. Jai Parabolic Springs Ltd., 306 ITR 42, considering the decision of the Hon'ble Supreme Court in the case of Goetze (India) Limited (supra), held that there was no prohibition on the powers of the Tribunal to entertain an additional ground, which according to the Tribunal, arose in the matter and for the just decision of the case . Since the issue of carry forward of unabsorbed losses of the earlier years was raised before the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year 2007-08. The carry forward of loss or depreciation is notified in assessment year 2007-08, therefore, it is to be seen whether late return for assessment year 2008-09 has any impact on carry forward of loss/depreciation. This fact has been looked into by the learned CIT (Appeals). Therefore, it also requires verification of fact whether it was brought forwarded losses or brought forward depreciation. In view of the above, I set aside the order of the learned CIT (Appeals) and restore this issue to the file of the learned CIT (Appeals) with direction to redecide this issue on merits strictly in accordance with law by verifying the factual facts from the record and shall also take into consideration the decision of the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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