TMI Blog2017 (12) TMI 1004X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the increase in the sales turnover from 10.85 crores to 13.90 crores, the estimated addition of G.P. at ₹ 3.00 lacs is in higher side, therefore, the addition on this count restricted at ₹ 2.00 lacs. Disallowances out of shops expenses, telephone expenses, low household withdrawals and interest not charged respectively - Held that:- Since, the addition on account of gross profit has been sustained, therefore, no specific additions out of various expenses debited in the P&L account can be sustained. In view of the factual and legal position, the same are directed to be deleted. - ITA No. 745/JP/2017 - - - Dated:- 13-12-2017 - SHRI BHAGCHAND, ACCOUNTANT MEMBER For The Assessee : Siddarth Mittal (CA) For The Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the ld. CIT (Appeals)-3 Jaipur also erred in confirming the same without considering the submissions made by assessee. 5. That the ld. AO erred in disallowing telephone expenses in the amount of ₹ 8,131/- i.e. 20% of total Telephone Expenses of ₹ 28,556/- merely on probability of personal use and without considering the facts of the case and the ld. CIT (Appeals)-3, Jaipur also erred in confirming the same without considering the submissions made by assesses. 6. That the ld. AO grossly erred in making addition of ₹ 45,275/- on account of low household withdrawals by allegedly estimating household expenses at ₹ 10,000/- per month i.e. ₹ 1,20,000/- for the year without there being any basis and with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aluation of closing stock is also not correct in absence of the detail of qualitywise commodities traded. The A/R of the appellant argued in his submission did not touch this issue. He submitted general and routine submissions. Therefore the action of the Assessing Officer for application of provision u/s 145(3) is justified and as per law. Next issue regarding the estimation of Gross Profit and making the addition on account of low Gross Profit rate. The A/R of the appellant argued that no basis of estimation and even no comparable case cited by the AO. There is force in the argument of the A/R of the appellant that the AO made the addition of ₹ 4,00,000/- without any basis and without comparable case. The A/R of the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icted it to ₹ 3.00 lacs. After considering both the sides and various other aspects of the case including the increase in the sales turnover from 10.85 crores to 13.90 crores, the estimated addition of G.P. at ₹ 3.00 lacs is in higher side, therefore, the addition on this count restricted at ₹ 2.00 lacs. Accordingly, ground No. 2 is partly allowed and ground No. 3 is dismissed. 8. In the grounds No. 4 to 7 the issues involved are sustaining the disallowances out of shops expenses, telephone expenses, low household withdrawals and interest not charged respectively. The ld. CIT(A) has dealt these issues by holding as under: ( i) I have carefully considered the material before me. I find that all shop expenses are not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant argued that he made advance out of his own capital of ₹ 25,93,477/-. This argument of the appellant is without any basis and he failed to establish the nexus that he used to his own capital for advancing for interest free loans. Therefore I am agree that AO rightly disallowances ₹ 15,600/- out of interest paid. Hence, I confirm the addition made by the AO of ₹ 15,600/-. This ground is not allowed. 9. Now the assessee is in appeal before the ITAT. The ld AR of the assessee has reiterated the submissions as made before the lower authorities and prayed to delete the additions. 10. On the other hand, the ld DR has relied on the orders of the authorities below. 11. The Bench have heard both the sides on these is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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